Japan’s broadest indicator of economic health rose at the fastest pace in 29 years, signaling the nation’s deepest postwar recession is easing.
The leading index, a composite of 12 indicators including stock prices and consumer confidence, climbed to 79.8 in June from 76.9 in May, the Cabinet Office said yesterday in Tokyo. It was the largest advance since comparable data were made available in January 1980. The median estimate of 15 economists surveyed by Bloomberg News was for 79.7.
“The report suggests Japan’s economy may have entered an expansionary phase and the recovery may be sustainable,” said Susumu Kato, chief economist at Calyon Securities in Tokyo. “Even as weak employment conditions continue to weigh on the household sector, production and exports are recovering, helping corporate profits.”
PHOTO: AP
Japan’s economy grew at an annual 3.8 percent pace last quarter from a record 14.2 percent contraction in the first three months, according to a Bloomberg News survey of economists. Industrial production surged 8.3 percent last quarter, the biggest jump since 1953, a report showed last week. Exports gained in June from a month earlier.
“Companies have brought forward inventory adjustments and exports are increasing,” said Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute in Tokyo. “That signals Japan’s economy is on a recovery track.”
Investor optimism that the worst is over for Japan has also spurred a 47 percent gain in the Nikkei 225 Stock Average since March 10, when it reached a 26-year low.
The rebound in global demand hasn’t spread to households, whose outlays account for more than half of the economy. The unemployment rate rose to a six-year high of 5.4 percent in June, and economists expect it to reach a postwar record next year. Wages fell at an unprecedented pace that month as companies slashed bonuses.
Coincident index, a measure of the current state of the economy, rose for a third month to 87.8. The three-month moving-average of the index, which the government uses to make its monthly evaluation, rose to 87 in June, the second monthly increase, the report showed.
The Cabinet Office left its assessment of the coincident index unchanged after raising it for May, saying the gauge is showing signs of bottoming.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source