"Japan's recession is over and the economy is heading to a recovery"
- Koya Miyamae, an economist at SMBC Nikko Securities Inc.
Activity within the Japanese tertiary sector rose more than expected in the second month of 2013, indicating that consumers are getting less anxious over the world's third largest economy's outlook, as the government pledged to boost growth and latest measures by the BOJ boosted consumer confidence. According to the Ministry of Economy, Trade and Industry, a gauge, which measures the domestic service sector in Japan, such as information and communication, electricity, gas heat and water, transport, wholesale and retail trade, surged seasonally adjusted 1.1% on month in February, after a 1.5% loss in the preceding month. Latest data indicate that companies are showing willingness to increase their spending as Haruhiko Kuroda pledged to inject about $1.4 trillion into the struggling economy in less than two years, in order to revive growth.
"Japan's recession is over and the economy is heading to a recovery," said Koya Miyamae, an economist at SMBC Nikko Securities Inc. in Tokyo who accurately predicted today's GDP result.
"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."
© Dukascopy Bank SA