December 16, 2007


Japanese economy (Financial Times, December 14 2007)

Data from the world’s second biggest economy have turned relentlessly bleak. Last week estimates of growth for the third quarter were revised down to an annualised 1.5 per cent compared with initial estimates of 2.6 per cent. A few days later a government survey revealed that consumer confidence had reached a four-year low in the month of November.

The recently completed reporting season showed a deceleration in earnings growth and that the stock market, down 10 per cent this year in local currency terms, has lagged behind global peers. Add in a likely US slowdown and a bout of yen appreciation, and it is hard to see what Japanese manufacturers have to smile about.

The pressing question is how bad things can get.

When people are a wasting resource things are going to get an awful lot worse.

Posted by Orrin Judd at December 16, 2007 12:02 PM
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