81174
Japanese Numbers Look Good
Japanese Numbers Look Good

Japanese Numbers Look Good

Japanese Numbers Look Good

Japan’s factory output rose more than expected in December, as production of automobile-related parts and other machines expanded, government data showed Wednesday. The figures showed industrial production was up 2.7%, the third consecutive monthly rise after a 0.5% rise each in October and in November. It beat market expectations of a 1.5% rise.
The latest data, released by the industry ministry, comes as Japan has notched up seven straight quarters of economic growth—the longest positive run for 16 years—with the upcoming 2020 Olympic Games giving the economy a shot in the arm, AFP reported.
But it has struggled to put to rest deflation fears, failing to achieve the 2% inflation rate target set by the central bank, which is thought crucial to boosting the economy.
The government and central bank hope to see a “virtuous cycle”, with an export-led recovery having a positive impact on jobs and household income and thereby boosting domestic demand, which accounts for roughly 60% of Japan’s economy.
On Tuesday, internal ministry data showed that the country’s household spending slipped 0.1% in December while the jobless rate edged up to 2.8% from 2.7% the previous month.
Meanwhile, Bloomberg expressed views of two economists:
- “The numbers look good, which is my simple impression,” said Hiroshi Hanada, head of economic research at Sumitomo Mitsui Trust Bank, adding that the Japanese economy likely expanded again in the fourth quarter. “Production is rising firmly on a quarterly basis, too.” While output may fall in January, it is forecast to rebound in February, Hanada noted. “I don’t think the upward momentum for production will be lost.”
“It’s debatable whether domestic demand is strong, but the consensus is that exports will continue to rise,” said Yasutoshi Nagai, chief economist at Daiwa Securities Co.

 

Short URL : https://goo.gl/ptEMSk
  1. https://goo.gl/BM3qsg
  • https://goo.gl/pfCxBK
  • https://goo.gl/pKWSdu
  • https://goo.gl/2278r8
  • https://goo.gl/xX1Pnn

You can also read ...

Jordan Approves New IMF-Guided Tax Law
Jordan’s cabinet on Monday approved major IMF-guided proposals...
US, China are nearing a deal to remove American sales ban against ZTE.
US President Donald Trump retreated from imposing tariffs on...
SBI Reports Record $1.1b Loss
State Bank of India reported a loss of Rs. 7,718 crore ($1.1...
IHS Markit to  Buy Rival Ipreo  for $1.8 Billion
Data firm IHS Markit Ltd. said it will buy smaller rival Ipreo...
Philippines May Suspend Excise Taxes on Petroleum Products
The Philippine government will suspend the collection of...
EU, Mercosur Discuss Trade Deal
The European Union and South America’s Mercosur bloc could...
German Growth Picks Up After Q1 Slowdown
The German economy is in a strong upswing despite data showing...
Dubai Bank to Buy Turkey’s Denizbank for $3.2 Billion
Dubai’s biggest lender the National Bank of Dubai has agreed...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus