Thomson Financial News - Industrial output, which the BoJ uses as a key gauge to ascertain the trend of the Japanese economy, now seems to be heading towards a downtrend. Given that momentum of exports to emerging markets, which have so far successfully compensated for a weaker export to the U.S., seems to be weakening, industrial production is likely to sag in the near term, thereby weakening further the function of the so-called 'virtuous cycle.