Printer Friendly

Japan's Capital Expenditures Plummet Most in Nearly 10 Years in Q2.

Japan's Capital Expenditures for all industries plummeted more than expected, -9.4% vs -6.9% in the second quarter of 2009, leaving those who had a sense of optimism puzzled as to when exactly a recovery should be expected. Their Tankan Index for large manufacturers, however, rose to -48 from -58 in the same period. The improvement comes after the first three months of the year saw the index reach the lowest point in the metric's 35 year history as the the Japanese economy continued to slide deeper into recession. This may not be such positive news. When looking deeper into the data we see that the Bank of Japan's Tankan Survey revealed that fixed investment plummeted in the period between April and June. Large manufacturers invested -24.3% less over the last 12 months, while medium manufacturers invested -31.7% less during the same period. Such news does not bode well for those betting on a smooth Japanese economic recovery. The start of Q2, April, saw Machine Orders decline 9 times more than that which was expected, -5.4% vs -0.6%.

2009 Al Bawaba (Albawaba.com)

Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2009 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Article Type:Brief article
Geographic Code:9JAPA
Date:Jul 1, 2009
Words:196
Previous Article:Commodity Currencies Decline On Expectations For Further Global Contraction.
Next Article:Dollar Momentum Jumps on China Manufacturing Data.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters