This is not unexpected. From AFP/CNA:
Japan's government downgraded its assessment of Asia's largest economy Friday for the first time in 15 months, saying the recovery was losing steam due to slowing US growth.
A monthly report from the Cabinet Office acknowledged that exports and industrial output are cooling while consumer spending is sluggish.
"The economy is recovering at a moderate pace," the report said, tweaking its previous assessment that the economy "is recovering, while some weaknesses are seen."
BoJ governor Toshihiko Fukui also spoke yesterday.
Japan's central bank chief warned Friday that uncertainties were growing in the world's second largest economy in light of a downturn in the US economy.
"A slowdown of the US economy is intensifying, while global financial and capital markets continue to be unstable," Bank of Japan governor Toshihiko Fukui told a parliamentary committee.
But he added: "Japan seems to have stronger resilience against external shocks than previously. Thus, I continue to believe that the chances are high that a gradual recovery will be sustained."
Meanwhile, Europe's economy appears to be holding up relatively well. From Bloomberg:
Growth in Europe's service industries accelerated more than economists forecast in February, prompting investors to reduce bets on European Central Bank interest-rate cuts.
Royal Bank of Scotland Group Plc's index of services, industries including banks, consultancies and airlines, rose to 52.3 from 50.6 in January, according to a preliminary estimate today...
Royal Bank's composite purchasing managers' index, which combines services and manufacturing and accounts for about half of the economy, rose to 52.7 from 51.8. A gauge of manufacturing slipped to 52.3 from 52.8, in line with economists' forecasts.
No comments:
Post a Comment