Japan has posted weaker than expected economic data
July 31 , 2013
Industrial output in Japan fell 3.3 percent in June, from the previous month and the household spending declined 0.4 percent from a year earlier. Analysts had expected growth of 1.0 percent instead.
Falling consumer prices tend to hurt the economy and policymakers have said that ending the deflationary cycle is key to solving the issue. The central bank doubled its inflation target to 2 percent earlier this year in order to boost consumer prices and spending. This had its benefits since consumer prices seem to have risen in June.
Although there was a decline in the country's factory outputs, analysts are of the opinion that it is temporary and predicted that production would jump in the coming months.
Chief economist with JP Morgan Securities, Masaaki Kanno said "this is a major blip, the overall trend is that of a recovery in Japan's economy."