World Economy

Japan Production Slumps

Japan Production SlumpsJapan Production Slumps

Japan’s industrial output dropped more than forecast in May as production of transport equipment and cars slowed, sapping a recovery in the world’s third-largest economy, NewsNow reported. Output fell 2.2% from April, when it increased 1.2%, the trade ministry said. Economists had forecast a 0.8% decline. Retail sales rose 1.7% from the previous month, more than estimated. The rebound from recession last year is showing signs of losing momentum at a time when global uncertainty is increasing with a slowdown in China and financial turmoil in Greece. JPMorgan Chase & Co. cut its growth estimate for the second quarter last week after weaker-than-expected consumer spending and sluggish trade, saying the economy will slow to a halt.