Japan factory output hits its three-year minimum
In May, Japanese industrial output went down at the fastest rate for three months to the lowest value since June 2013, thus highlighting worries regarding dropping exports as well as poor consumer spending.
May's 2.3% dip in industrial output significantly exceeded the median estimate for a 0.1% slump forecast in Reuters survey.
The descend in industrial output is closely connected with the fall in exports, as many financial analysts state.
The slow recovery in domestic consumer spending is another crucial factor. The government needs to consider some measures to drastically improve domestic demand.
This autumn the Japanese government in on the verge to announce more fiscal stimulus spending in order to revive Prime Minister Shinzo Abe's actual economic agenda. In fact, strengthening domestic demand has already become more urgent because revenues in the Japanese yen further threaten exports.
In May, output descended because of declines in the output of cosmetics, chemicals, construction equipment as well as semiconductors.