Japan is still in search of a consumer recovery

Business, Economics, Japan

Japan’s fourth quarter GPD growth of 4.8%, which was released today, exceeded economists’ expectations. However, although consumer spending rose by 1.1% on an annualised basis, this merely compensated for the 1.1% decline in Q3.
In addition, wages rose by only 0.2% last year, barely up from a decade-long decline. Companies are preferring to pay down debt and invest in new machinery to raising salaries.
A further worry is the yen, which has been at a 20-year low in real terms. If the yen were to strengthen, exports would, of course, decline. In Q3 last year, the contribution of net exports to growth was 1.7%. Without these net exports, the economy would have shrunk by 0.9%.
Let’s hope the Bank of Japan doesn’t rush into an interest-rate rise on the back of the 4.8% rise in GDP, thereby snuffing out any hope of consumer-led growth.

PREVIOUS POST

Is global warming a load of hogwash?

15/02/2007

Japan’s fourth quarter GPD growth of 4.8%, which was released today, excee...

Learn more
NEXT POST

Prepare for a legislative flood

16/02/2007

Japan’s fourth quarter GPD growth of 4.8%, which was released today, excee...

Learn more
More posts
China real estate a growing stress point for global chemicals demand
17/06/2019

By John Richardson WE ALL know, or at least we all should know, just how important is the Chinese ec...

Read
Environmental credits separate polymer Winners and Losers as the world divides
14/06/2019

By John Richardson THE WORLD is becoming a much more complex and fragmented place as the consensus a...

Read
Trade War: 88m tonnes of lost polymers demand despite the boom in Asia ex-China
12/06/2019

By John Richardson SURE, there are tremendous opportunities for petrochemicals and polymers companie...

Read
Trade war certainties: A bi-polar world and the overwhelming importance of Chinese demand
10/06/2019

By John Richardson THE IRONY IS that if the US trade deficit with China shrinks because of the trade...

Read
China PP demand growth still heading for seven-year low despite surge in imports
07/06/2019

By John Richardson ALL is not suddenly right with China’s polypropylene (PP) demand despite our re...

Read
Symptoms worsen for Dr Benzene and China economy as trade war accelerates
06/06/2019

By John Richardson THE ABOVE chart is again telling us something very important about the real state...

Read
China PE spreads at seven-year low indicates too many eggs in one basket
04/06/2019

By John Richardson CHINA polyethylene (PE) spreads over naphtha feedstock costs are at a seven-year ...

Read
Vietnam PE demand booms on trade war, but for how much longer?
31/05/2019

By John Richardson GLOBAL manufacturing supply chains are adjusting to the US tariffs against China,...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more