TOKYO (Reuters) – Japan’s output gap in the October-December quarter turned positive for the first time in six quarters, the Cabinet Office estimated on Tuesday.
A positive output gap occurs when actual output exceeds the economy’s full capacity, and is considered a sign of strong demand. It is among data the Bank of Japan watches closely in determining whether the economy is expanding strongly enough to propel a demand-driven rise in inflation.
(Reporting by Kaori Kaneko; Editing by Chang-Ran Kim)
