Not looking good in Japan:
iht.com
Japan Registers Declines In Output and Retail Sales
TOKYO - Japan's hopes of an economic turnaround were darkened Monday
by data showing an unexpected fall in industrial output and more weakness in retail sales.
Industrial production fell 0.6 percent in February from the month before on a seasonally adjusted basis, the Ministry of International Trade and Industry said in a preliminary report.
Inventories rose 0.5 percent, the first increase in 10 months, officials said. The inventory buildup indicates that Japanese consumers remain reluctant to start spending in the face of deflation.
Retail sales in the month declined 2.7 percent after a steep 4.5 percent fall in January.
Despite the gloomy figures and pessimistic forecasts from some economists, Prime Minister Keizo Obuchi has insisted Japan's worst postwar recession has bottomed out and a recovery is on its way.
But Peter Morgan, economist at HSBC Securities in Tokyo, said the output figure was worse than expected, with shipments sharply down from forecasts.
The trade ministry's ''forecasts support our view that the bottom for output has not yet been reached,'' he said. ''Inventory adjustment is not yet completed.''
The retail sales figure was badly hit in the month by lower sales of
pharmaceuticals, toys, books and sporting goods, the officials said.
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