TOKYO (NQN)--Japan's real gross domestic product rose by a price-adjusted 0.3% quarter on quarter in the July-September term, rather than by 1.2% as initially estimated on Nov. 16, the Cabinet Office reported Wednesday. In annualized terms, growth came to 1.3%, a downgrade from the preliminary figure of 4.8%. Nominal GDP fell 0.9%, down from the preliminary estimate of a 0.1% decline. The annualized drop comes to 3.4%, rather than 0.3% as figured before. By category, personal consumption rose a price-adjusted 0.9% on the quarter, revised upward from the previously estimated 0.7% increase. Housing investment fell 7.9%, rather than 7.7%. Capital investment dropped 2.8%, not 1.6%. Public investment fell 1.6%, down from the initially estimated 1.2% decline. The GDP deflator, which represents overall change in price levels, staged a fall of 0.5%, rather than a rise of 0.2% as figured in the preliminary report.
Source: Nikkei, December 9, 2009
TOKYO (Nikkei)--Industrial machinery orders fell 6.6% year on year to 305.96 billion yen in October, the tenth straight month of decline, the Japan Society of Industrial Machinery Manufacturers said Wednesday. The decline narrowed significantly from September's 30.7% drop, but nonetheless, the figure came in lower than in October 2008, when orders plunged amid the global financial crisis. The total was dragged down by domestic orders, which fell 19% to 192 billion yen. While domestic orders from manufacturers rose 7.5%, those from nonmanufacturers and government slumped. Overseas orders rose 26.1% to 113.9 billion yen, making for the first increase in ten months.
Source: Nikkei, December 9, 2009
TOKYO (NQN)--The industrial production index (2005=100) rose a seasonally adjusted 0.5% from September to 86.1 in October, for the eighth straight monthly expansion, according to revised data released Monday by the Ministry of Economy, Trade and Industry. The figure was unchanged from the preliminary reading. The capacity utilization index for manufacturers inched up 0.2% to 80.5. Source: Nikkei, December 14, 2009
Source: Nikkei, December 14, 2009
Industries around the world are up in arms after China's recent decision to give domestic products preferential treatment when making government procurements. The new regulations require the government to purchase only products that were developed in China or for which China owns the intellectual property rights, and that have trademarks registered in the country. The regulations cover 125 different items in six categories, including computers and communication devices that the government has accredited as high-tech products. The likely result will be a de facto ban on foreign firms from the procurement market. Government procurements accounted for about 590 billion yuan (about 7.7 trillion yen) last year. However, some estimates show the market is worth as much as 3 trillion yuan (39 trillion yen), when items purchased by each individual government agency is included. In response to such measure, the governments of Japan, the United States and Europe will follow the move and plan to urge China to rescind the new rules, claiming they are protectionist. At the same time, 34 business organizations from Japan, the United States and Europe sent a joint letter of protest last week. However, China has not signed on to the World Trade Organization's Agreement on Government Procurement, making it difficult for Japan and its Western counterparts to file a complaint with the WTO.
Source: Yomiuri Shimbun, December 15, 2009
Retail outlets and Supermarket chain are raking in sales from warming garments that make use of high technologies. Most of the garments are made from one of two types of fabric.One type of garments are made of exothermic and insulating fabrics while the other has improved heat retention in the material itself. All the products sold by retailers and major supermarkets have the dual qualities of being both thin and warm. In addition, those products are affordable and have high-quality stitching as well.
Source: Yomiuri Shimbun, December 15, 2009
Despite a slump in consumer spending, sales at the Uniqlo Co. fast-fashion retail chain grew 7.9 percent year-on-year in November, marking the fourth month in a row of growth, the parent company said Wednesday. Given that the economy has entered a deflationary phase, last month's sales by the Uniqlo fast-fashion retail chain are impressive. The key, says Tadashi Yanai, 60, chairman of Uniqlo parent company Fast Retailing Co., is to stay innovative, develop high-value-added products and be unafraid to take risks. Uniqlo's uptick in November sales were mainly due to heat-retaining Heattech undershirts, tights and socks, along with fleece jackets, the company said. Sales soared more than 40 percent over the same month two years ago, and may turn out to be Uniqlo's biggest sales ever for a single month. The company has produced 50 million Heattech items. Uniqlo expanded its range of colors and designs for Heattech items this year, improving their functions. Many customers bought several at once, the company said. The rush to buy has led to a shortage of certain colors and styles since early November, and some shops have posted notices of apology. Yanai boasted that Heattech products are nothing like the bulky undershirts of years ago. They are so light, some people forget they are wearing them, he said. "People who bought them last year came back this year to buy more. I think other companies cannot imitate our products," he said. In the coming spring and summer, Uniqlo will add more high-function products, such as quick-drying underwear. "We are convinced that we can 'dig up' more potential demand," Yanai said. The government and business sector are worried about deflation, but sluggish consumer spending is the fundamental problem, the chairman noted
Source: Asahi Shimbun, December 4,2009
TOKYO (Nikkei)--Zensho Co. (7550) said Thursday that its subsidiary which runs the local unit of U.S. hamburger chain Wendy's will terminate its franchise contract with parent Wendy's/Arby's Group Inc., marking an exit from the fast-food segment. On Dec. 31, the firm will terminate deals for the usage of Wendy's business name and brand.
Source: Nikkei, December 10, 2009
The number of people traveling overseas from Japan between late December and early January, the period when both hotel and flight charges are set higher, is expected to decline by 4.1 percent to 565,000 from a year ago, according to projections by JTB Corp. It will be at the lowest level since the 2001-02 season. In addition to business downturns, the days on which statutory holidays fall during the period likely makes it difficult for people to take a long vacation. By destination, declines in the number of travelers are expected to be most significant in Europe and the United States, destinations where people usually spend seven or more days. The number of those who plan to visit the United States is projected to decline 15.2 percent to 28,000 from a year ago while the number traveling to Europe is to drop 6.9 percent to 67,000. The reduced number of people traveling to distant destinations is expected to push down the average amount spent on overseas travel per person by 15.1 percent to 193,000 yen, dropping below the 200,000 yen mark for the first time in four years. In addition, many people are likely tightening their purse strings because seasonal bonuses are expected to be much smaller this year due to the deteriorating economy.
Source: The Yomiuri Shimbun, December 10, 2009
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source: http://www.depthai.go.th