Japan unemployment rate steady as output slows in October

Japan's unemployment rate remained unchanged in October, official data showed Friday.

According to the Statistics Bureau of Japan, the jobless rate held steady at 2.6% in October, matching September's figure.

The reading surpassed the 2.5% increase consensus forecast cited by FXStreet.

Meanwhile, figures from the Ministry of Economy, Trade & Industry showed industrial production rising at a slower pace in October.

Industrial production rose 1.5% year-on-year, easing from a 3.8% increase in September.

On a monthly basis, industrial production grew 1.4% in October, down from a 2.6% growth in the previous month, but beating the 0.6% fall that was expected based on the FXStreet-cited consensus forecast.

Min Joo Kang, ING senior economist, South Korea and Japan, said: "We believe manufacturing activity has normalised once a trade agreement was officially reached between the US and Japan. It seems like the auto sector is benefiting the most...The most notable gains were from cars and petrol chemicals. Car output rose 7.2% in October, recording three consecutive monthly rises."

At the same time, retail sales continued to recover in October.

According to the data from METI, Japanese retail sales grew 1.7% annually in October, up from a 0.5% rise in September, and ahead of the 0.8% gain consensus cited by FXStreet.

Month-on-month, retail sales grew by 1.6%, accelerating from a 0.3% increase a month earlier.