Japanese weekly consumption has recovered to the level of the past three years since September, according to the Government of Japan Cabinet Office press release. Here are the key highlights in recent economic developments driving recovery:
Private Consumption
- Weekly consumption has recovered to the level of the past three years since September.
- Home appliances sales rose from the level in 2018
- Services spending, mainly in travel, picked up despite slowdowns in the summer
- Occupancy rates for accommodations increased moderately
- Diffusion Index (DI) of the Economic Watcher Survey at the end of October rose from the previous month in both Current and Future economic conditions.
- DI for Current economic conditions is still low but improving
Export and Production
- Exports picked up, with notable gains in automobile-related goods and ICT-related goods.
- Production of material industry, electronic parts and devices, and transport equipment increased due to export recovery.
- The government expects production to continue picking in November.
Employment Situation
- The number of unemployed persons has gradually increased, but there are hopes as production is picking up.
- The number of employees is gradually increasing while the number of furloughed workers is declining from the March level.
- Overtime hours worked rose, and a decline in total cash earnings is gradually diminishing.
- The number of active job offers is rising, with an improvement year over year.
- Overall, the employment situation is improving, but weaknesses remain.
Trends in Business Activities
- Corporate profits are projected to decline in FY2020
- Earnings in transportation equipment, accommodations, eating and drinking services, transport and postal activities will decline substantially
- Firms judgments on business conditions registered marginal improvements, but some severe aspects remain
- The number of corporate bankruptcies remains unchanged, but attention shifts to future developments.
Trends in Business Investment
- Manufacturers and non-manufacturers face excessive capacity despite the operating rate remaining low, slowing business investments.
- Companies are cautious as the aggregate figure of the investment plan for FY2020 has been revised downward from June.
- The software investment plan is solid and has been revised upward from June.
The Japanese Yen is currently gaining. USDJPY is slightly down 0.04%
