Atlantic International Partnership Headlines:Japan’s Economy Struggles for Air

http://altlanticinternationalpartnership.net/2011/05/loading-symbols-authors-japans-economy-struggles-for-air/With the arrival of the first real Japanese data since the tsunami struck, the immensity of the tragedy which Japan is passing through is only now gradually becoming apparent. Exports were down by a seasonally adjusted 7.7% in March over February, while imports only fell by a much more modest 1.4%, with the inevitable consequence that the trade surplus, which forms the lifeline for Japan’s fragile economy, shrank sharply. In particular car production was badly hit, with output at Toyota (TM) plunging 62.7% during the month, while Nissan (NSANF.PK) reported a drop of 52.4% and Honda (HMC) put the shrinkage in its Japanese domestic production at 62.9% – adding that output would be at 50 percent of its former projections until at least the end of June.
In fact March output across the whole of Japanese industry fell at a record monthly pace of 15.3%, while household spending declined at the record annual rate of 8.5%.


Large as they are, however, these numbers were to some extent expected. More worrisome from the Japanese point of view is the fact that production may be many months getting back to earlier levels given supply chain problems and the fact that electricity generating capacity will remain problematic, leading to reductions in the level of power available.