News from Tokyo tell us that the Japanese industrial output increased recently. Data from the government shows that this was the first increase in three months. This comes as a surprise to a lot of experts since the last few months have seen an economic slowdown. Most of it was due to China’s economy suffering as well as slower domestic consumption.
The Bank of Japan will have a meeting this Friday which will be focusing on what economic policies need changing. Economists believe that this new data might influence the decisions which will be taken during this very important meeting.
The sectors which led this sudden economical upsurge were the auto and electronic component ones. The exportation of cars to the U.S., EU and China has also increased while the electronics sector saw an increase due to new gadgets released this fall, like the iPhone 6S from Apple.
The Japanese Ministry of Economy released information which shows an overall increase in exportation of around 4.1% in October. While this is clearly good news they expect it to go down by 0.3% in November.
After this data was released the dollar lost almost half a cent compared to the yen before going back to its regular average price of around 120.65 Yen. Despite all of this the fact that the Chinese economy is starting to slow down is still a matter of concern for a lot of companies from around the world.
Last year saw Japanese companies walking away with record profits. Despite all of this success there was no increase in home investments or any form of pay raises for employees. All of this only managed to further frustrate policy makers which have been struggling with these issues for a very long time.
This Wednesday saw Komatsu Ltd., a huge firm which makes machinery, report a 17% drop in their net profit for the period of April-September. They released a statement saying that they see no way out of this situation and that Japan should expect a period of extended weakness in this sector of business.
If you want to find out more about the subject you should know that on November 16 Japan will release all off their estimates for the gross domestic product in the third quarter of this year.
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