The financial crisis across the Eurozone has had ripple effects around the globe. Many of the eastern manufacturing powerhouses like China and others are all experiencing lulls in consumer demand and declines in production output. Despite expectations for a quicker recovery, the Japanese economy has been unable to bounce back from last year’s tsunami and the current global recession. BBC News reports on Japan’s struggling manufacturing industry and their expected future outlook:
Japanese industrial production slipped 0.1% in June, from the previous month, amid fears that economic weakness in Europe is threatening recovery.
Industrial production in Japan unexpectedly fell for the third straight month, prompting renewed fears the economy is losing steam.
Factory output dipped 0.1% in June, compared to the previous month. It follows a 3.4% decline in May.
“Economic growth is on a much weaker trend than what the government and the Bank of Japan are telling us to believe,” said Satoshi Osanai from Daiwa Institute of Research.
“Any recovery will be temporary and the economy will continue to languish for months ahead. Exports to the US are already at high levels and have little room for additional growth,” he added.
The strong yen is another hurdle for Japanese exporters has it makes their goods more expensive overseas.