Tokyo, industrial production drops, for the 5th month in a row
Tokyo (AsiaNews / Agencies) - The production of Japanese companies fell in October to the same level as February 2009, when the country had not yet been caught up in the global crisis. The drop in exports and the rapid decrease of the effects of public funding is likely to continue in the coming months and make the announced economic recovery uncertain.
In October, industrial production decreased by 1, 8%, according to official figures revealed yesterday by the government. The predictions were even worse, it is the 5th consecutive month of decline.
The Minister of Economy has shown predictions of a resumption of production by approximately 1.4% in November and 1, 5% in December. But these data have been criticized by analysts, who see no clear signs of a recovery in exports or domestic consumption. In mid-November international orders showed the worst fall of 2010. Furthermore, the increase in unemployment and the decline in domestic consumption are expected to lead a return to economic data from early 2009.
A further decline in Japan's economy is widely expected in the last quarter of 2010, again for the fall in exports, even while car sales are at a standstill after an increase favoured by public subsidies for the purchase of less polluting cars, which ended in September.
Rising unemployment is also a concern, which rose to 5.1% in October compared to 5% in September. Also in October, spending for domestic consumption fell by 0.4% compared to October 2009.
In October the government announced the possibility of new funding to stimulate the economy, supported by the issuance of government bonds. But in recent weeks the yen has lost value and forced the postponement of any such initiative.
.png)
10/03/2011
