Recovery in Japan losing momentum

"The Japanese economy can't depend on consumer spending as an engine for growth," said Taro Saito, an economist at NLI Research Institute in Tokyo, who correctly forecast the jobless rate and the decline in production. "Japan's economic recovery is already losing steam, and...

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Bibliographic Details
Published inChina daily (North American ed.)
Main Author Tim Kelly and Lily Nonomiya
Format Newspaper Article
LanguageEnglish
Published New York, N.Y China Daily 01.12.2004
EditionNorth American ed.
Subjects
Consumer spending
Unemployment
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Summary:"The Japanese economy can't depend on consumer spending as an engine for growth," said Taro Saito, an economist at NLI Research Institute in Tokyo, who correctly forecast the jobless rate and the decline in production. "Japan's economic recovery is already losing steam, and will probably peter out by the end of this fiscal year" on March 31. The Nikkei 225 Stock Average fell 0.7 per cent to 10,899.25 at the 3 pm close of trading in Tokyo, led by retailers including Ito- Yokado Co. The yen weakened to 103.20 against the dollar at 4:35 pm in Tokyo from 102.86 late yesterday in New York. "The ongoing inventory adjustment in the high-tech sector and the slowdown in exports caused the drop in production," said Mamoru Yamazaki, chief economist at Barclays Capital in Tokyo. "There's no mistake that the momentum has slowed."
ISSN:0748-6154