Japan In Its Deepest Deflation On Record, Global Recovery Struggling
CNBC:
...Wholesale prices also slid 8.5 percent in the year to August, matching a record hit in July, pointing to deepening deflation that could force the Bank of Japan to keep its ultra-easy monetary policy in place for a long time to come...
In a sign weak final demand is playing an increasing part in pushing down prices, overall final goods prices, or the prices of finished products charged to businesses, fell 5.1 percent from a year earlier in August.
Domestic final goods prices, which loosely track the consumer price index, dropped 3.6 percent.
Revised figures on Friday are expected to confirm that while Japan's economy emerged in April-June from its worst recession since World War Two, recovery will be slow and far from assured as much of it depends on stimulus measures...
Bloomberg:
Sept. 10 (Bloomberg) -- Japanese machinery orders fell to a record low in July, signaling companies burdened with idle factories are wary that a rebound in global demand will last. Orders, an indicator of capital spending in the next three to six months, plunged 9.3 percent from June to 665 billion yen ($7.2 billion), the lowest level since the survey began...
‘Isn’t Much Demand’
“Orders are down and at this point it’s hard to make a forecast,” said company spokesman Hironobu Seo. “Our customers are running below capacity, so there isn’t much demand for new equipment.”
Corporate cost cuts have also hurt Japan’s workers, darkening the outlook for retailers including Seven & I Holdings Co., which last month lowered its profit forecast and said it may close 20 supermarkets. Wages slumped 4.8 percent in July after an unprecedented 7 percent drop the previous month.
Orders by service companies dropped 2.8 percent, today’s report showed...
Fading Stimulus
In the latest signs that the worldwide stimulus is losing effect, the Australian government said today that employment fell in August...
...Wholesale prices also slid 8.5 percent in the year to August, matching a record hit in July, pointing to deepening deflation that could force the Bank of Japan to keep its ultra-easy monetary policy in place for a long time to come...
In a sign weak final demand is playing an increasing part in pushing down prices, overall final goods prices, or the prices of finished products charged to businesses, fell 5.1 percent from a year earlier in August.
Domestic final goods prices, which loosely track the consumer price index, dropped 3.6 percent.
Revised figures on Friday are expected to confirm that while Japan's economy emerged in April-June from its worst recession since World War Two, recovery will be slow and far from assured as much of it depends on stimulus measures...
Bloomberg:
Sept. 10 (Bloomberg) -- Japanese machinery orders fell to a record low in July, signaling companies burdened with idle factories are wary that a rebound in global demand will last. Orders, an indicator of capital spending in the next three to six months, plunged 9.3 percent from June to 665 billion yen ($7.2 billion), the lowest level since the survey began...
‘Isn’t Much Demand’
“Orders are down and at this point it’s hard to make a forecast,” said company spokesman Hironobu Seo. “Our customers are running below capacity, so there isn’t much demand for new equipment.”
Corporate cost cuts have also hurt Japan’s workers, darkening the outlook for retailers including Seven & I Holdings Co., which last month lowered its profit forecast and said it may close 20 supermarkets. Wages slumped 4.8 percent in July after an unprecedented 7 percent drop the previous month.
Orders by service companies dropped 2.8 percent, today’s report showed...
Fading Stimulus
In the latest signs that the worldwide stimulus is losing effect, the Australian government said today that employment fell in August...