Subscribe free to our newsletters via your
. Space Industry and Business News .




POLITICAL ECONOMY
Japan's factory output rises in May
by Staff Writers
Tokyo (AFP) June 28, 2013


Japanese factories put in an unexpectedly strong performance in May, data showed Friday, a further sign that the world's number three economy is picking up as Tokyo embarks on a huge drive to boost growth.

The news will also provide an extra fillip to Prime Minister Shinzo Abe as his party faces parliamentary elections next month that are widely expected to see a resounding victory for him, solidifying his power base.

Friday's figures showed industrial production jumped 2.0 percent in May from a month earlier and add to an improving trade picture as exports to the United States and China surge on the back of a weaker yen.

The rise was the best since December 2011 and beat expectations of a 0.2 percent uptick.

Since taking office in December, Abe has launched a huge round of monetary easing, big fiscal spending and a series of reforms aimed at freeing up businesses -- a policy that has been dubbed "Abenomics".

Japan's sleep-walking economy has been given a jolt by the moves, with the yen shedding some of its export-sapping strength and the stock market surging. A weak yen makes Japanese exporters more competitive overseas and boosts the value of repatriated foreign income.

In afternoon forex trade the yen slipped to 98.90 against the dollar from 98.43 late Thursday in New York. The Nikkei stock index was also 3.55 percent higher.

However, while Friday's output data was impressive it was partly driven by an uptick in production of large machinery such as turbines and boilers, which were likely to be temporary, said Yasuo Yamamoto, senior economist at Mizuho Research Institute.

"The June figures could weaken, although in the longer-term the trend is still upward," he added.

The news was also tempered by separate figures Friday that showed consumer prices flat in May.

While there was a modest increase in the metropolitan Tokyo area and the results were better than a fall in the previous month, they showed the hard work that still needs to be done to end years of stubborn deflation that has hindered the economy.

Household spending also remained weak, falling 1.6 percent from a year earlier.

The Bank of Japan in April set an ambitious target of reaching two percent inflation in as many years while also unveiling a massive bond-buying programme similar to that used by the US Federal Reserve. But Finance Minister Taro Aso acknowledged that a quick end to falling prices was unlikely.

"I don't think reversing deflation will be easy," he told a regular press briefing Friday.

Consumer prices and household spending figures are a key signal for economists who have been trying to ascertain whether "Abenomics" is actually working.

Deflation is bad for the economy because it encourages consumers to put of purchases in the hopes of getting them cheaper down the road which, in turn, weighs on producers.

This week, Abe said he will spend the next three years rebuilding the nation's fragile economy, having banished the gloom that covered Japan when he came to power.

Adding to Japan's challenges, the country's fuel imports have soared as most of its atomic reactors remain off-line since the huge earthquake and tsunami in 2011 sparked the world's worst nuclear accident in a generation.

The disaster at Fukushima knocked Japan's already lumbering economy and forced Tokyo to turn to pricey fossil-fuel imports to plug the energy gap.

Separate figures released Friday showed Japan's jobless rate was unchanged at 4.1 percent in May.

.


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








POLITICAL ECONOMY
Exclusive: World Bank's Kim says no country immune from turmoil over inequality
Washington (AFP) June 28, 2013
No country in the world is immune from unrest arising from poverty and inequality, World Bank President Jim Yong Kim told AFP in an exclusive interview. The protests in Brazil, Turkey, and elsewhere show that even governments that have made significant efforts already cannot let up in programs to help the poor, he said. "There's no country in the world that is immune from having this kin ... read more


POLITICAL ECONOMY
Major rethink needed if chemical industry is to meet greenhouse gas targets

U.S., Japan work to analyze disaster radiation levels

Laser guided codes advance single pixel terahertz imaging

New laser shows what substances are made of; could be new eyes for military

POLITICAL ECONOMY
USAF Awards Lockheed Martin Contract for IT and Telecommunications Services

Northrop Grumman Provides Fuel Quantity Indicator For E-3D AWACS

Canada Makes First Call On AEHF

Mutualink Deploys Full Range of Communications Capabilities

POLITICAL ECONOMY
SpaceX Will Launch Turkmenistan Satellite For Thales Alenia Space

New Mexico Space Grant Consortium student experiments blast into space from Spaceport America

Arianespace Soyuz Puts Four O3b Networks' Birds Into Orbit

Four O3b Network birds integrated to Arianespace Soyuz launcher

POLITICAL ECONOMY
Beidou's second trial held in Yangtze Delta

The next batch of Galileo satellites

Raytheon's latest air traffic management systems go into continuous operation

Raytheon's Satellite Air Navigation System marks 10 years of continuous service in the US

POLITICAL ECONOMY
Lockheed Martin's Final JLTV Development Vehicle Rolls off Assembly Line

Maiden flight for Italian-assembled Chinook

Third F-35 for the UK Arrives at Eglin Air Force Base

Hollande seeks Rafale jet deal with Qatar

POLITICAL ECONOMY
Beyond Silicon: Transistors without Semiconductors

Two-Dimensional Atomically-Flat Transistors Show Promise for Next Generation Green Electronics

New TCH Series Offers Hermetically Sealed Tantalum Polymer Chip Capacitors For Aerospace Applications

Danish chemists in molecular chip breakthrough

POLITICAL ECONOMY
Five Years of Stereo Imaging for NASA's TWINS

Vegetation as Seen by Suomi NPP

How did a third radiation belt appear in the Earth's upper atmosphere

Arianespace to launch Gokturk-1 high-resolution observation satellite

POLITICAL ECONOMY
China and haze to dominate Asia security meeting

Mexico City trash-for-food market helps capital clean up

Oregon chemists moving forward with tool to detect hydrogen sulfide

Malaysia pressures Indonesia over haze crisis




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