Japan's Economy Continues to See Negative Signs

Well, the outlook for the coming months in Japan looks none too positive, with machinery orders and small business sentiment both plumming the depths right now.

Japanese machinery orders fell by 10.4 percent in the third quarter, equalling the biggest drop on record, as manufacturers cut their investment plans in anticipation of the impact of the global slowdown on overseas demand. The decline in orders, which is normally read as an indicator of capital spending the next three to six months, broadly equals a drop registered in 1998, the last time the Japanese economy fell into a really serious recession.

Month on monthly Japanese machinery orders were up 5.5 percent in September, a move which was described by the government as a "weak rebound.''

Economy Watchers Index Hits Lowest Recorded Level

Sentiment among Japanese small businessmen was the worst ever in October according to the lastest reading on the Economy Watchers index, a survey of barbers, taxi drivers and others who deal with consumers,which dropped to 22.6 in October, the lowest since the government started the survey in August 2001.

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Jan 01 05:59 PM