RE:Japan economic fundamentals again downgraded to 'deteriorating'
"200235 published on 2019-10-08 11:01:19
The consensus index of economic sentiment fell 0.4 points to 99.3 in August from August, according to the cabinet office on Wednesday.Japan's exports and production are faltering, hurt by a slowdown overseas. Four of the seven components of the consistent index fell in August, with significant declines in wholesale commercial sales and industrial and mining production.Among exports in August, Japan's main exports, such as cars and parts and semiconductor manufacturing equipment, were weak. Japan's manufacturing downturn will continue to put downward pressure on the domestic economy amid global trade tensions.From the perspective of Japan, the consumption tax rate was officially raised to 10% from October 1. Some analysts believe that this may restrain personal consumption, thus causing a negative impact on the economy.The same day's data also showed that the leading index, which reflects the trend in the economy in a few months, fell 2 points in August to 91.7.The cabinet office announced in May that it had downgraded its assessment of the underlying condition of the Japanese economy to "deteriorating" for the first time in more than six years because of the march decline in the consensus index. Subsequently, the cabinet office maintained its judgment for April as "deteriorating" and revised its judgment for may to July to "stop declining"."