Bank of Japan says economic recovery gathering stronger momentum
[just who do these people think thay are kidding? mish]
Wednesday, October 13, 2004 9:20:14 AM
afxpress.com
TOKYO (AFX) - Japan's economic recovery is expected to continue, "gathering stronger momentum" as the benefits of steady growth spread more widely through the economy and population, the Bank of Japan said in a monthly report. It said exports and industrial production continue to expand, "albeit at a slightly slower pace." Corporate profits and business sentiment also continue to improve, and corporate capital spending has increased, the central bank report said
The impact of excessive debt and other structural problems on corporate activity is weakening, laying the conditions for an improvement in labor conditions and a hoped-for steady pickup in consumer spending
"Although firms are still restraining their labor costs, the positive effects of the increases in production and corporate profits on household income are expected to become visible," the report said
Employment conditions are already improving, and "the decline in household income is coming to a halt." But housing investment is virtually flat, and public investment is projected to keep dropping, the report said. Consumer prices, too, are expected to continue falling slightly on a year-on-year basis, as Japan continues to wage a six-year battle with deflation. However, overall, "Japan's economy is expected to continue to recover, gathering stronger momentum," the central bank concluded in its monthly economic assessment |
