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Japan's factory output rises 4% in April

By Toru Yamanaka

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Japan is dependent on it export for economic growth, while others (especially developing countries i.e. China, South East Asians) are very much dependent on Japan's high tech, globally-dominating & advanced manufactured components such as stepper motor (for industrial robots), CMOS sensor (for Camera from Sony), Li-ion battery (Panasonic, Sanyo, competing with S. Korea), precision gear, linear motion guide, ball screw & servo motor (for CNC & High Tech equipment), high quality & reliable electronic components i.e. Capacitor (by Murata) & many others.

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socrateos May 31  06:53 pm JST Actually Japanese economy does not depend much on exports in comparison to other developed countries.

Exports to China, Japan’s largest trading partner, climbed about 15 percent to a record high for the recent month. Exports have driven five consecutive quarters of growth in Japan’s economy, the longest run in a decade. When the global economy is going strong, exports to China grow. Exports are the only part of the Japanese economy on a firm footing.

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Japanese companies still relies on exports for their profit...

Actually Japanese economy does not depend much on exports in comparison to other developed countries. Only 16% of Japan's GDP is from exports - the second smallest (after US's 12%) among G7 nations. In comparison, for example, 27% for UK, 30% for Italy and France, 46% for Germany, and 46% for South Korea come from exports.

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"Falling prices can discourage spending by consumers, who might postpone purchases until prices drop more or look to save money instead."

Almost every article talking about consumer spending has this exact line! I am going to continue to cut and paste it every time I see it, because no matter how often you repeat a lie, it is still a lie!

People are not spending because they don't have money. It is as simple as that. Sure your Taro Asos of the world have lots of money, and I guess that extra Y140000 Abe was getting a month does not hurt, but the regular guy on the street is not doing well, and hence consumer demand is dropping.

Why are people in North America still buying, it is not that they have great confidence in the future, but they are getting better wages, and salary increases on a yearly basis. I was fortunate enough this year to get a raise, a whole Y700 per month! Oh what great things will I buy with all that extra cash flowing out of my pockets. I have enough for a Happy Set from McDonald's, with a coffee from 7/11.

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Japan's factory output rises 4% in April

Which coincides with consumers and companies receiving their tax returns. Nothing to see here people! Move along!

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The growth has more to do with exchange rates in Japan. Japanese companies still relies on exports for their profit. The adjustment in weaker yen makes Japan more competitive abroad. Domestic labor rate and supply cost has not changed.

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4% Rise in Apr., 1.9% down in March and again in May it will be down 2.5% = 0.4% down in three months.

"....data indicating the world's third-largest economy is finally seeing moderate expansion." not true.

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That was its fifth straight quarterly rise and the longest string of gains since 2006. and still no hint of a minimum wage rise. But allow for wealthy women to claim tax rebate for a live in nanny/ cleaner.

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Great news, are the workers getting a pay rise? Are the workers getting time off? Isn't the whole point of life having a life.? But 10 points for achieving 4% growth. Now if only wages grew 4%

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