Economics
Data Deluge Shows Japan’s Economy Sputters on as Prices Fall
- Industrial production offered bright spot for Japan in August
- Government and central bank still face big economic challenges
How Much Longer Can the BOJ Overshoot Inflation?
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Japan’s economy sputtered along in August, with a rise in industrial production pointing to modest third-quarter growth. Yet consumer prices fell for a sixth straight month and households cut spending, underscoring the challenge facing Bank of Japan Governor Haruhiko Kuroda as he tries to spur 2 percent inflation.
"Japan’s economy will probably continue to recover in the third quarter but growth momentum will likely be weak," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Co. in Tokyo. "There is no change to the picture that Japan’s economy lacks a driver to spur growth."