Japan industrial output and household spending drop

8 years ago by in Business

Japan’s manufacturers have to face a decline in demand from key markets while consumers see market prices rise. In these circumstances, Japan posted weak economic data and the experts said the figures are the result of the challenges the government has to face to revive the country’s economy.

Industrial output fell 3.3% in June, from the previous month and 4.8% compared to the same month a year ago. Meanwhile, household spending declined 0.4% from a year earlier even though analysts were expecting a 1.0% growth. Japan has been trying to boost domestic consumption in an attempt to revive its stagnant economy.

Analysts said that while the data was weak and highlighted the challenges faced by the government and this is not the case for concern.

“This is a minor blip, the overall trend is that of a recovery in Japan’s economy,” Masaaki Kanno, Japan chief economist with JP Morgan Securities told the BBC.

Prime Minister Shinzo Abe’s government has unveiled a series of aggressive measures to boost domestic demand, which has been hurt in part by years of falling prices or deflation.