Bloomberg notes Japan Enters Recession as Economy Contracts in the Third Quarter.
Japan’s economy contracted in the third quarter on sluggish business investment, confirming what many economists had predicted: The nation fell into its second recession since Prime Minister Shinzo Abe took office in December 2012.
Gross domestic product declined an annualized 0.8 percent in the three months ended Sept. 30, following a revised 0.7 drop in the second quarter, the Cabinet Office said Monday in Tokyo. Economists had estimated a 0.2 percent decline for the third quarter.
Weakness in business investment and shrinking inventories contributed to the contraction amid concerns over slower growth in China and the global economy that prompted Japanese companies to hold back on spending and production. While growth is expected to pick up in the current quarter, the GDP report could put pressure on Abe and Bank of Japan Governor Haruhiko Kuroda to boost fiscal and monetary stimulus. The BOJ holds a policy meeting later this week.
Second Recession or Fifth?
It may be the second under Shinzo Abe but ZeroHedge posted this chart on the Quintuple-Dip Recession.
Abenomics has been a total failure, as expected. But it did weaken the yen sending the stock market soaring.
Mike “Mish” Shedlock