Official Data and 6 More Indicators Say Japan Recession is Worse Than Thought

Japan’s recession is worse than many had thought.

Official data says Japan’s economy shrank 0.5 percent in the 3Q.

Japan, Asia’s largest economy, shrank 1.8 percent (annual basis) in the three months to September.

This is Japan’s first recession in seven years and the second straight quarter of negative growth said Tokyo.

Weak business investment was the main blame. Companies slashed investment in new equipment and factories by 2.0 percent.

Japan had sluggish exports as well.

Japan relies on exports of cars, electronics and other goods.

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1.  Mitsubishi Chemical has cut capital spending by 27% and is rethinking R&D.

2.  Sony will cut 16,000 jobs.

3.  Machine tool orders in November have tumbled by a record 62%

4.  Nippon Electric Glass projects 55-65% drop in Oct-Dec Op Profit.

5.   Mitsui High-tec projects 1st net loss in 6 Years For FY08.

6.  Tokyo Office Vacancies have creeped up to 2.9% for November.