Liberal Japan

Some data on unemployment, prices, industrial production, and consumption …

Unemployment:

Japan’s jobless rate rose for the first time in 11 months as more people sought work, underlining concerns about the slow pace at which economic growth has translated into benefits for workers. The unemployment rate rose 0.2 point to 3.8 per cent in August, while the job to job-seekers ratio deteriorated slightly from 1.07 to 1.06. The unemployment rate for women rose from 3.3 per cent to 3.7 per cent, according to official figures released on Friday. (link)

Prices:

Partly as a result, there has been little upward pressure on core consumer prices. The core consumer price index fell by 0.1 per cent in August from a year earlier, according to Friday’s data, its seventh straight month of decline. … Prices of electronics, including flat-screen televisions, dropped sharply, while the cost of mobile phone use also fell after the introduction of special deals for new subscribers.

Industrial Production:

In better news, industrial production for August was stronger than expected, rising a seasonally adjusted 3.4 per cent from the previous month. That was partly the result of a catch-up in car manufacturing after an earthquake disrupted business at parts suppliers in July.

Consumption:

A slowdown in consumption also stopped, according to the household survey, which showed real consumer spending grew 1.6 per cent in August against the same month in the previous year. Retail sales grew 0.5 per cent, while spending on entertainment, leisure and education leapt 11.3 per cent.

Trade Surplus:

Japan’s trade surplus nearly quadrupled in August from a year earlier as strong exports to Europe and Asia offset a slowdown in shipments to the US, data showed on Wednesday, but economists were watching for possible fallout from softer US growth. … The customs-cleared trade surplus rose 287.6 per cent in August from a year earlier to Y743.2bn ($6.47bn), well above analysts’ median forecast for a 26.6 per cent rise to Y242.8bn. Exports rose a greater-than-expected 14.5 per cent from a year earlier, helped by a 16.4 per cent jump in exports to Asia and a 15.6 per cent increase in those to Europe. Shipments of vehicles rose 22.0 per cent from a year ago in value terms, as exporters made up for a slowdown in July after an earthquake temporarily halted car production, said the Ministry of Finance, which compiles the data. Imports rose at a much slower pace than expected, in part because of a sharp fall in aircraft purchases, the official said. …Exports to the US increased 4.6 per cent from a year earlier. In volume terms, US-bound exports fell 5.2 per cent from a year earlier, but the pace was slower than a 10.4 per cent decline in July. (link)