"Japan's economy can emerge from recession in the first quarter as consumer spending and exports are expected to pick up"
- Yasuo Yamamoto, senior economist at Mizuho Research Institute
The output at Japanese manufacturers, mines and utilities fell less than expected in November, indicating some positive signs for the world's third largest economy. Industrial production shrank by 1.4% after a revised 1.7% drop in the previous month, the report by the Ministry of Economy, Trade and Industry showed Friday. As the industrial production is correlated with consumer conditions such as employment levels and earnings, it can be expected that in case of further improvement, the Japanese economy may emerge from its recession.
"Japan's economy can emerge from recession in the first quarter as consumer spending and exports are expected to pick up," said Yasuo Yamamoto, senior economist at Mizuho Research Institute. "But in order for growth to accelerate even further, capital expenditure needs to improve. Unfortunately, capital expenditure is likely to remain weak."
"There have been signs of the economy bottoming out," Yoshiki Shinke, chief economist at Dai-Ichi Life Research Institute. "It would not be surprising to see the decline in the coincident index coming to a halt in the near term."
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