Japan Production Rose Less Than Expected
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Japan received another jolt of bad economic news as industrial production rose less than expected, consumer spending and prices fell, and the jobless rate held at a record high 5% in August.
Production rose 0.8% in August from July, less than the 2.8% increase economists expected. Companies were already trimming production this month before terrorist attacks on the U.S. sparked fear of a global recession, and Fujitsu Ltd. and NEC Corp. have since signaled deeper cuts may be in store.
Japan’s economy is probably in recession for the fourth time in just over a decade. Gross domestic product shrank 0.8% in the second quarter from the first quarter, and will probably contract again this quarter, economists said.
Consumer’s reluctance to spend is dragging the economy down. Household spending fell 1.3% in August from July, more than the 1.1% drop economists had forecast. Consumer spending makes up about 55% of gross domestic product.
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