Japan's industrial output fell in June for the first time in five months, government data released Tuesday, because it highlights the vulnerability of the world's third largest economy recovery.
Manufacturing in June from a month ago fell by 3.3% and 4.8%, lower than the previous year, the economy, trade and industry ministry said.
These indicators show that China's weak economic growth could weaken some of the momentum of economic recovery.
However, other data show that the unemployment rate edging to 3.9%, when the economy was criticized by the global financial crisis in October 2008, the lowest level since. The unemployment rate has remained at 4.1%, in the past few months.
The latest official data have questioned whether the government should continue with the commitment to increase the sales tax, economists say, could undermine restore growth and progress out of deflation.
Central Bank President Haruhiko Kuroda said Monday he believes that the economic recovery is strong enough to resist, it is necessary to increase taxes to compensate for the expansion of the deficit, Japan's national debt hit a record high level.
Prime Minister Shinzo Abe with his claim that "Abenomics" strategy to combat deflation aggressive monetary easing and strong government expenditure progress. But he said he might consider revising plans to increase by 3%, 8%, next year in April.
Figures released earlier showed that consumer prices rose 0.4% in June, but which excludes food and energy prices, core inflation is still negative. Food and energy costs in large part to push the yen, which led to this resource-poor countries in imports of food and energy costs dramatically weakened.
Desktop computers, ground meat and canned fish imports prices, with electricity and gas rates. Multiple categories of food prices extended chicken powder, jam, bread, salad dressing.
But many other consumer products, such as DVD players and digital cameras, prices continued to fall.
Fresh from his Liberal Democratic Party in the House of Lords victory in parliamentary elections, Abe acknowledged that, despite some signs of improvement, many Japanese have not felt the impetus of his policy. He has vowed to continue to promote a deeper and more fundamental economic reforms designed to help restore Japan's competitiveness.
The enterprise is beginning to invest more and raise wages to help drive consumer demand for the majority of Japan's economic recovery is a key factor in growth.
Despite double-digit sales toniest department stores in Tokyo, overall retail sales fell in June from a month ago, the survey showed consumer spending slowdown, Marcel Thieliant, and Capital Economics (Capital Economics), economist, on Monday a report said.
"Looking to the future, where there is some skepticism recent strong consumer spending can continue to run the grounds," he said, noting that a 70 trillion yen ($ 716 bn) increased household wealth due to stock prices rebounded earlier in the total household wealth in a small part.
"Now, with rising inflation, income growth has been warmer, as well as their families, in order to maintain their spending power," he said. "The vast majority of families, as inflation is negative, and may control their spending in response."
 



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