Feeling the effects of a slower US economy, Japan’s economic measurements are showing a slowdown has begun.
“Japan’s machinery orders fell the most in almost 20 years, [falling 17% from June] dashing expectations that the central bank will raise interest rates before the end of the year.” Orders from communications equipment fell about 27%.
In Japan, the recent expansion is led by capital spending, not by consumer spending like in the US. Therefore, this slowdown is significant for their recovery.
Nikkei stock average: – 1.8%
Exports: Q1 2.2%, Q2 .9% (slowdown!!)
Capital spending Q1 3.3%, Q2 3.7%
Orders from manufacturers:
June +25%, July – 18%
Wages fell for the first time in 6 months, and retail sales fell also.
Although this one month of data could be an anomaly, it could also be signalling the global slowdown I’ve been discussing. The US slowdown is starting to affect the rest of the world.
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