Home / Knowledge / News / Textiles / Japan slips back into recession
Japan slips back into recession
17
Nov '15
Japan's economy shrank in the July-September quarter as the economy contracted 0.8 per cent, sending the country into a technical recession, according to media reports.

The preliminary data means the world's third-largest economy has contracted for a second consecutive quarter, marking a technical recession.

Growth was expected to decline after it fell a revised 0.7 per cent in the second quarter on weak domestic demand.

Japan has been in recession four times since the global financial crisis.

On a quarterly basis, growth fell 0.2 per cent in the third quarter from the previous one, weaker than forecasts of a 0.1 per cent decline.

The seasonally adjusted figure was also much lower than expectations of a 0.2 per cent drop.

Despite the declining growth, the government is positive that a recovery is underway.

Economics Minister Akira Amari, at a news conference after the data was published, noted a shortage of labor available for public works projects to stimulate the economy, highlighting a major constraint policymakers face - not enough suitable workers to build growth.

Amari nodded when asked if he saw "no need" to craft an extra budget to stimulate demand right away, despite US Treasury Secretary Jack Lew proposing earlier that Japan should provide more fiscal support to ensure it returns to growth - led by domestic demand.

"While there are risks such as overseas developments, we expect the economy to head toward a moderate recovery thanks to the effect of various (stimulus) steps taken so far," the minister said in a statement.

Economists said the weak data will put more pressure on the government and central bank to continue to stimulate the economy.

Japanese companies continue to be wary of using their record profits to raise wages and invest in the economy - a major challenge for Prime Minister's Shinzo Abe's "Abenomics" policies.

Business spending fell 1.3 per cent, against forecasts of a 0.4 per cent decrease. It also marked the second quarter in a row of declines.

But, private consumption, which accounts for 60 per cent of the economy rose 0.5 per cent from the previous quarter. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search