Free Newsletters - Space - Defense - Environment - Energy - Solar - Nuclear
..
. Earth Science News .




POLITICAL ECONOMY
Japan factory output in unexpected fall for June
by Staff Writers
Tokyo (AFP) July 30, 2012


Japan's factory output turned down unexpectedly last month, official data showed Monday, stoking concerns that turmoil overseas is damaging a recovery in the world's third-largest economy.

The output decline came amid growing fears about the fiscal situation in Europe -- a major market for Japanese products -- and a strong yen hurting demand for products from the nation's factories.

Industrial production in June edged down 0.1 percent from the previous month, said the ministry of economy, trade and industry -- smaller than a revised 3.4 percent fall in May but well short of market expectations for a 1.6 percent rise.

Underlining the downward trend, data also showed that factory output declined 2.2 percent in the April to June quarter from a year earlier.

"Industrial production appears to be flat (in June)," the ministry said in its monthly report, downgrading its earlier assessment in May, which said production was on a recovery path.

The June decrease was largely due to falling output from automakers and other transport equipment manufacturers, the electronics industry, and the iron and steel sector, it said.

A survey of manufacturers released with the production data was mixed with firms expecting factory output to rise 4.5 percent in July and fall 0.6 percent in August.

The latest figures came after central bank and government officials said Japan's economy appeared to be gaining traction, although they warned that weakness in Europe was the biggest threat to any recovery.

"Economic growth is on a much weaker trend than what the government and the Bank of Japan are telling us to believe," said Satoshi Osanai, economist at Daiwa Institute of Research in Tokyo.

"Any recovery will be temporary and the economy will continue to languish for months ahead. Exports to the US are already at high levels and have little room for additional growth," he said.

Osanai added that the positive effects of a temporary government subsidy for eco-friendly cars "have run their course".

However the data appeared to have little impact on investors who pushed up the benchmark Nikkei 225 index by 0.80 percent on Monday.

Japanese industry is facing major challenges after the country shut down its nuclear reactors in the wake of last year's atomic crisis, with industrial users being asked to make deep cuts in energy consumption.

All 50 of Japan's nuclear power stations were switched off after the March 11 tsunami, which swamped reactors at the Fukushima Daiichi plant and sent them into meltdown.

Despite widespread anti-nuclear sentiment the government later approved a plan to restart two reactors, which have now come online.

Manufacturers were hammered by last year's natural disasters, while the strong yen -- which hit record highs against the dollar last year -- has hurt exports.

Europe, a key market for everything from Japanese televisions and DVD players to cars and machinery, remains at the top of policymakers' concerns, with officials repeatedly saying the eurozone crisis was the biggest threat to economic recovery.

Naoki Murakami, chief economist at brokerage Monex, said Japanese manufacturing was not in as bad condition as the headline index suggested, but "there are signs that US-bound automobile exports that had led the production until early spring began to lose steam".

"We should pay attention to risks of outlook downgrades by major automakers when they announce results this week," he said in a note.

-- Dow Jones Newswires contributed to this article --

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
China's cabinet calls for innovation, investment
Beijing (AFP) July 30, 2012
China's cabinet called Monday for stepped up innovation and an increased role for private investment in state-dominated industries, warning the country's economy was under intensifying pressure. "With the domestic economy under increasing downward pressure, the timely adoption of effective policy measures" is needed, the State Council, or cabinet, said in a statement. It called on indust ... read more


POLITICAL ECONOMY
Sri Lanka navy urges Australia to deport boatpeople

Samurai festival returns to disaster-hit Japan

UNHCR official to visit Rakhine state

EU discusses new NGO law with Russia

POLITICAL ECONOMY
Quantifying the Environmental Impact of Structural Materials with B-PATH

Northrop Grumman GATOR Radar System Delivered to Wallops Island for the Start of Government Developmental Testing

Jury picked in blockbuster Apple-Samsung case

BELLA Laser Achieves World Record Power at One Pulse Per Second

POLITICAL ECONOMY
Delving into the molecular mechanism behind deep-sea bacteria's pressure tolerance

Scotland moves to defuse 'prawn war'

Ancient reservoir could bring water to dry Namibia

'Red tide' species is deadlier than first thought

POLITICAL ECONOMY
China to build first polar-expedition icebreaker

Hidden rift valley discovered beneath West Antarctica reveals new insight into ice loss

Scientists find Grand Canyon-sized rift under Antarctic ice

Tropical plankton invade Arctic waters

POLITICAL ECONOMY
Public strongly supports programs helping farmers adapt to climate change

Study: All chickens have Asian roots

Japanese Kobe beef debuts in Hong Kong

Isolated Paraguay pledged farmers' support

POLITICAL ECONOMY
UN heads for flood-hit areas in North Korea

N. Korea forecasts new storm damage after deadly floods

Geothermal activity seen in New Zealand

Death toll from Beijing floods rises to 77: Xinhua

POLITICAL ECONOMY
Panetta to visit North Africa, Middle East

Brother of exiled Rwandan ex-army chief gets 9 years' jail

Mozambique told to tackle crime

New sapphire find sends panners into Madagascar lemur park

POLITICAL ECONOMY
Piglets in mazes provide insights into human cognitive development

Genomic study of Africa's hunter-gatherers elucidates human variation and ancient interbreeding

Unprecedented accuracy in locating brain electrical activity with new device

The longer you're awake, the slower you get




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement