That's current Q already, not 1st.
<<Final demand in Japan remains weak -- BOJ
TOKYO, June 16 (Reuters) - The Bank of Japan said on Tuesday in its monthly report that final demand in Japan remained weak and output was continuing to fall, adding that as a result jobs and income conditions had recently worsened greatly.
''Final demand remains weak and production continues to decline in Japan. As a consequence, employment and income conditions have recently shown a significant deterioration,'' the central bank said in its report.
It added that if the deterioration of the employment situation were to lead to a further worsening of economic conditions, it could weaken the effects of the fiscal policy included in the government's supplementary budget for the current fiscal year.
The report said that regarding final demand, Japan's net exports had virtually peaked out due to falls in exports to other Asian countries.
It also said that consumer spending showed few signs of a recovery, although the drop in spending had come to a stop.
The report said that on the back of such weak demand, inventories grew further and industrial production continued to fall.
The central bank said that prices were likely to remain weak for some time.
The central bank also said that market concern over credit risk remained strong, adding that the gap between the yields of commercial bonds and those issued by the government has been significant since the end of last year.
On the outlook on the economy, the BOJ said: ''The implementation of the supplementary budget for fiscal 1998 is assumed to boost demand through additional public works and special income tax reductions, and cease (the) negative interaction of production, income and expenditure.'' >> |
