Japan factory output shows unexpected fall for June


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© 2012 AFP

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The output decline came amid growing fears about the fiscal situation in Europe—a major market for Japanese products—and a strong yen hurting demand for products from the nation’s factories.

Japan is in a bad place. Generally when countries are having problems (like the EU), they enact all kinds of laws to "support" domestic production at the expense of imports. Save local jobs and all that. It doesn't usually work, but that's what they do.

For people in Japan related to manufacturing/exports, this kind of thing is only going to get worse.

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The June decrease was largely due to falling output from automakers and other transport equipment manufacturers, the electronics industry, and the iron and steel sector, it said

In other words, all the major Japanese export segments were down. Does not bode well for a sustained recovery.

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stoking concerns that turmoil overseas is damaging recovery in the world’s third-largest economy.

How original. Geez, is there not one single mirror in Japan?

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Duh! Power shortages, the high yen and the high production costs make it a no brainier. Japan needs to float the yen and soon. Than and restart the other reactors.

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