Adding a fresh blow to the world’s third-largest and Asia’s second-largest economy, Japan, amid an ongoing trade row with its noisy neighbor Seoul, Thursday’s (December 26th) government data had revealed a calamitous economic outlook for the closest US ally in Asia, as Japan’s industrial profit was plunged for the second consecutive month in November, suggesting a possible contraction in Japanese economy over the fourth quarter of the year, as demand scoresheet lags readings in both home and abroad in the wake of a growing grudge between S.
Korea and Japan alongside a steep global slowdown. On top of that, according to Thursday’s (December 26th) government data, Japan’s factory output slid by 0.9 per cent in November from a month earlier, which followed a drop of 4.5 per cent in October, the largest month-on-month decline since January 2013 while the Japanese Government had begun to keep track of its data.
Meanwhile, following Thursday’s (December 26th) government data, several analysts held a softer global demand alongside a drop in consumer spending following a nationwide tariff hike responsible behind a sharply contracting Japanese economy, while addressing to a tempestuous fourth quarter for the Japanese economy, a chief economist at Dai-ichi Life Research Institute, Yoshiki Shinke said on Thursday (December 26th), “The overall economy including factory output is expected to contract sharply in the current quarter. It is expected to rebound in January-March but the issue is how much it will recover. ”