Japan August Industrial Output: Updated Oct. 1, 2025.

Japan's August industrial output falls 1.2% on sluggish demand for PCs

Article source: https://mainichi.jp/english/articles/20250930/p2g/00m/0bu/011000c

Ideas

Japan is still heavily focused on industrial output as manufacturing is still a significant economic activity in Japan. 

While many economies have transitioned to a more service based economy, and Japan too, manufacturing is still a key part of the Japanese economy.

The problem or challenge is it seems like, while services and technology are strong economic activities, manufacturing in Japan is still a significantly important part of the Japanese economy.

An index number of 100.9 is still good but maybe some might want to see a higher index number that represent better output of manufacturing in the Japanese economy.

For a very long time, software and services were not considered significant company endeavors in Japan as production of hardware was the key endeavor for a Japanese company.

Its only been recently that software, services, and technology have taken root in Japanese companies.

Manufacturing is usually never a 100 percent upward linear activity as there are always going to starts and stops related to material shortages, equipment maintenance, and the the normal up and downs of supply and demand.

For example during the pandemic there was supposed shortage of semiconductors which affected Japan manufacturing significantly and even globally.

And then there is/was the Toyota group mishap related to testing quality control which caused the shutdown of some of the Toyota group production lines.

The personal compute sector is very competitive market and Japanese personal computers have been losing market share to other companies such as as those in Taiwan, China, South Korea, then of course Apple which has a significant market share related to personal computers.

All 15 of the industrial sectors are never going to be positive at the same time as there are going to some that are positive and some that are negative as with the sectors overall in an economy there are going to be some sectors that are positive and some that are negative.

It could be, that at this time, very difficult to accurately measure how much the effects of the tariffs are having on the Japanese economy as maybe Japanese companies are absorbing any increases in tariff and trying to maintain production levels the best they can.

And again, at the same time, it could be US car dealerships are trying keep prices down the best they so that US consumers are not going to feel to put-off with the higher prices that potentially the tariffs could bring.

Industrial output in Japan is not just exports to the US but also the production of many other  different products that are also used in the Japanese domestic economy.

But at the same time, exports to the US are a significant economic activity and it alone might be considered an economic growth engine for the Japanese economy.

An increase or decrease in industrial shipments could be a good indicator of increased growth in demand for some Japanese products.

And the same with inventories but the inventory category needs to be taken with a grain of salt as inventories either increased or decreased could related to estimates that were correct or not correct depending when they were done.

Have a nice day!

Toyota Global Sales: Ideas Later.

Toyota global sales up 2.2% in Aug. on solid US demand

Article source:  https://mainichi.jp/english/articles/20250929/p2g/00m/0bu/026000c

Article to be deleted after commentary.

Article:

TOKYO (Kyodo) -- Toyota Motor Corp. said Monday its global sales in August rose 2.2 percent from a year earlier to 844,963 units for the eighth straight month of increase, boosted by solid demand in the U.S. and other overseas markets.

Global production climbed 4.9 percent to 744,176 vehicles, the world's largest automaker by volume said, increasing on year for the third consecutive month on the back of strong sales of hybrid vehicles.

Toyota's overseas sales set a new record for August, rising 4.4 percent to 748,694 units, with sales in the United States growing 13.6 percent to 225,367 units, thanks to robust demand for hybrids despite higher tariffs imposed by President Donald Trump.

Among other regions, sales in China edged up 0.9 percent to 153,415 units, thanks to the effects of the government's subsidies for purchases of environmentally friendly vehicles and strong demand for its new electric vehicle model, the automaker said.

In contrast, domestic sales dropped 12.1 percent to 96,269 units, affected by delayed deliveries due to output suspensions following tsunami warnings and advisories issued after a powerful earthquake off Russia's Kamchatka Peninsula.

Toyota said production in the United States grew 19.0 percent to 126,081 units, but that in China declined 8.2 percent to 125,383 units. Domestic output increased 12.0 percent to 207,990 units, helped by a rebound following a certification scandal last year.

The struggling Nissan Motor Co., which has been undertaking major restructuring to turn its business around, also saw production for the month edge up 0.8 percent from the previous year to 237,941 units, lifted by the popularity of its N7 electric vehicle in China.

Meanwhile, the country's second-biggest automaker Honda Motor Co. reported its 13th consecutive month of output decline with a 13.0 percent drop to 267,005 units due to stiff competition in China, Indonesia and Malayasia.

Suzuki Motor Corp. said production shrank by 5.2 percent to 241,749 units, its seventh straight month of decrease, and Mitsubishi Motors Corp. saw its output fall 10.9 percent to 59,372 units.

Total global production by the eight major Japanese automakers fell 2.0 percent to 1,816,107 units, while their worldwide sales slipped 1.7 percent to 1,945,064 units.

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Japan Prices Increased in October: Ideas Later.

How will our daily lives in Japan be affected by price hikes, min. wage updates from Oct.?

Article source: https://mainichi.jp/english/articles/20250926/p2a/00m/0bu/031000c

Article to be deleted after commentary.

Article:

TOKYO -- Starting in October, various systems and mechanisms relating to our daily lives in Japan will change. The medical co-payment for elderly outpatients will be raised for some individuals aged 75 and over, while food prices will continue to rise, with 500-milliliter beverages set to see their price tags reach 200 yen (approx. $1.35) or above each. Meanwhile, minimum wages will be revised by each prefecture in sequence, with the national weighted average rising by 66 yen to 1,121 yen (about $7.58) per hour. Here are the details of key changes.

Elderly co-payment will rise while relief measure will end

The co-payment hike will affect 75-plus-year-old single-person households with an annual income of 2 million yen (approx. $13,500) or more, as well as households of two or more members with a yearly income of 3.2 million yen (about $21,600) or above. This demographic's co-payment had already been raised from 10% to 20% in October 2022, but that was ameliorated by a monthly outlay cap of 3,000 yen (around $20.28). This measure will be terminated, bringing the co-payment to the full 20% in principle.

Price hikes for food and beverages

Companies including Kirin Beverage Co., Asahi Soft Drinks Co., Suntory Beverage & Food Ltd., Coca-Cola Bottlers Japan Inc. and Ito En Ltd. will raise their suggested retail prices for drinks in plastic bottles and bottle-shaped cans from October.

A range of 500-milliliter drinks like "Mitsuya Cider" and "Coca-Cola" will cost 200 yen or more when purchased from vending machines. Additionally, Takanofoods Co.'s "Okame Natto" fermented soybeans and Sato Foods Co.'s "Sato no Gohan" cooked rice series will also see price increases. According to Teikoku Databank Ltd., the prices of more than 3,000 food items are expected to rise in October, marking the largest barrage of such hikes since April.

Mandating 'flexible work styles'

Companies will be required to establish systems for "flexible work styles" such as teleworking and shorter working hours to support employees with children. Employees with preschool children aged 3 and up must be allowed to choose from these options. Employers will also be required to confirm workers' preferences regarding their hours and job locations during their or their spouses' pregnancy and child birth.

Raising minimum wages

Each of Japan's 47 prefectures will raise their minimum wages one after another. The national weighted average will rise by 66 yen to 1,121 yen per hour, surpassing the 1,000-yen (approx. $6.76) mark across all prefectures.

Tokyo will top the list of prefectures with high minimum wages at 1,226 yen (approx. $8.29), while Kochi, Miyazaki and Okinawa prefectures will share the bottom spot at 1,023 yen (about $6.92). Tochigi Prefecture will raise its minimum wage first, on Oct. 1, while Akita Prefecture's will take effect last, on March 31, 2026.

Auto insurance rates will also see hikes

Tokio Marine & Nichido Fire Insurance Co. will raise its auto insurance premiums by an average of around 8.5%. This comes in response to soaring repair costs due to high prices and increased insurance payouts stemming from natural disasters, marking the second hike of its kind since January.

Sompo Japan Insurance Inc., Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co. also plan to raise their car insurance premiums by an average of between 6% and 7.5% in January 2026.

Japan Real Wages In July: Updated Sept. 28, 2025.

Japan's real wages in July revised down, fall for 7th straight month

Article source: https://mainichi.jp/english/articles/20250926/p2g/00m/0bu/049000c

Ideas:

Real wages are always affected by inflation and the Japanese economy ever since the pandemic has been constrained by consistent inflation, which of course lowers the purchasing power of Japanese consumers.

Wage growth has been a challenge for the Japanese economy as, for the most part, Japan's wages are much lower than other advanced economies and has again been constrained by consistent stagflation and near zero GDP growth for a very long time.

Japan, traditionally, gives two bonuses a year, which may or may not make-up for the lower wages in Japan. But as inflation has even hit companies in Japan summer bonuses sometimes are not what Japanese workers expect which of course means less spending in the Japanese economy.

There is the possibility, that when Japanese companies increased wages in April, which is the normal fiscal start of the new year in Japan, that companies might have depleted any extra funds needed for the traditional summer bonus.

And it must be remembered that up to 70 percent of Japanese workers don't work for the name-brand large Japanese companies but work for small and mid-size companies that don't have the needed resources to match what large Japanese companies give in wage increases, which again might mean less spending in the Japanese economy.

Nominal wages are really not important as they are not adjusted for inflation which means real wages are whats important for a consumer as real wages can determine what a workers purchasing power is or how much they can actually spend in an economy.

And to be sure, consumer spending in the Japanese economy has been constrained for a long time due to consistent inflation in Japan, and consumer spending makes up about 50 percent of Japan's GDP, which is probably not high enough to really improve economic growth.

Again the nominal increase wages just indicates how much inflation has increased in Japan which means that inflation has not decreased much and has put a constraint on much of the Japanese economy and especially again consumer spending in Japan.

The Japanese consumer price index has consistently, ever since the pandemic has been higher than normal or what's good for an economy and its consumers.

As was noted in previous articles even though there were gains in real wages but due to inflation being consistently higher than wage increases they were still not enough to overcome inflation in Japan. which again means consumers in Japan were less better off as wages haven't been able to help the average Japanese consumer with any extra disposable income needed to spend in the Japanese economy.

And again, it must be remembered that only about 30 percent of the Japanese work-force works for the large name-brand companies in Japan. The other 70 percent of the work-force work for small and mid-size companies which don't have the needed resources to pay the same wage increases which means that maybe 70 percent of the Japanese work-force might not have the needed disposable income to spend in the Japanese economy to help the economy grow.

Have a nice day!

Spending in Japan: Updated Sept. 29, 2025.

Clothing, footwear spending in Japan in 2024 halved from bubble-era period

Article source: https://mainichi.jp/english/articles/20250925/p2g/00m/0li/017000c

Ideas:

Consumer spending in Japan has always been a challenge is the Japanese just don't spend like US consumers do as the Japanese, for the most part, are more savers than spenders.

Being a saver is good for the individual or family but not good for an economy as for example businesses that save are good for a business but not good for investments or spending in an economy.

Back in the day during the 1980's economic boom in Japan spending might have been out of control or there was a lot of spending maybe thinking that the boom could last forever, which of course it didn't.

Strained budgets are been a part of the Japanese economy for a very long time, as for example many Japanese companies, in the early 2000's decided to limit wage increases for their workers.

As a result, as normal, Japanese workers began to cut-back on their spending which might have caused the Japanese economy to become stagnant and not grow with eventually resulted in deflation.

Only recently, the past two years have Japanese companies have begun to loosen the purse strings have begun to increase wages to help improve the economy and or from pressure from the Japanese government to increase wages to help the economy grow.

Yes, for the most part, except for needed essential clothing, clothing can be considered important but not an essential product to buy every week or every month but just once or twice a year at the most.

And yes, food is very much an essential item and needs to be bought every day or every week as needed, depending on a families style or an individuals style, as some Japanese families might be fresh food every day at the local supermarket and or some might bu bentos or boxed meals as needed as they go home from work.

Yes, as Japanese consumer begin to see less and less in their disposable incomes they might see the need to find clothing bargains and or seek out clothing stores that offer prices which match their budgets.

Today's Japanese mindset among consumers maybe now are getting used to the idea of flea markets and secondhand clothing as needed to keep their budgets from getting too bloated due to increased inflation in Japan.

And yes, fast fashion companies such as GU, Uniqlo, and maybe Zara and H&M are good places to buy as they might be better alternatives than the more traditional clothing shops in Japan.

The traditional clothing shop in Japan, while providing high quality products might not be the best choice for the average Japanese family these days.

And yes, the upper-middle class and other groups might still buy from the traditional high-priced shops but now they might be out of reach for again the average Japanese family of even the lower-middle class family that can't afford to go to Ginza and from the ups-scales stores  in some places in Tokyo.

The spending habits of the average Japanese consumer is changing like it is in many countries globally these days and companies need to be aware that what is good today might not be good tomorrow as consumer spending habits and tastes are are always changing.

Have a nice day!

German Companies Relocating to Japan: Ideas Later.

German companies choosing Japan as Asia manufacturing hub: survey

Article source:  https://www.japantimes.co.jp/business/2025/09/22/companies/german-companies-japan-survey/

Article to be deleted after commentary.'

Article:

German companies in Japan see the country as a manufacturing hub for Asia — and not just as a sales market — with stability, affordability and proximity to major markets cited as top draws, according to a survey by the German Chamber of Commerce and Industry in Japan (AHK Japan).

Regulatory robustness and relative affordability of operation, due to the weakness of the yen against the euro, contribute to Japan being an attractive choice for manufacturers. Japan’s proximity to other large markets in Asia, including Southeast Asia and China, also adds to its allure.

There are some 730 German companies in Japan, of which 84 operate production or assembly sites at 132 locations. In the report released last week, based on a survey of 34 German businesses in Japan, 41% of the respondents said they export Japan-manufactured products to the Association of Southeast Asian Nations (ASEAN) region, 38% said they ship to China, and 29% to North America.

“German companies want to be ready to mitigate any unexpected surprises,” said Marcus Schurmann, CEO of AHK Japan, noting that global turbulence had resulted in companies looking to establish production plants in Japan and in other countries in Asia.

Many German manufacturers have a long-established relationship with Japan, with 76% of companies surveyed having been producing in the country for over 20 years. Of these, 57% said they plan to expand or are already expanding their production footprint in Japan.

Japanese and German companies also have underlying similarities in the way they approach business relationships.

“Germany and German companies are interested in long-lasting business relations. Companies are aware that, in Japan, the decision-making process requires time. ... But the relationship is typically a lasting business relationship,” Schurmann said.

Proximity to customers was cited as a motivating factor in choosing Japan (79%) as a hub, while 38% of respondents cited stability of supply chains. Consideration of supply chains and mitigating political risk have developed as an area of concern for many global businesses.

A separate survey conducted by AHK Japan and KPMG last year showed that 38% of German companies were relocating their production facilities from China to Japan, with 94% of such companies saying they valued Japan's economic stability.

“In times of geopolitical turbulence and economic challenges, Japan proves to be a safe haven. Globally, the country continues to achieve top scores, with a strong reputation for its reliability,” a summary of the report read.

Japan has many positive qualities, but the market does face some challenges — such as talent acquisition and retention, particularly as demand for skilled workers grows.

The most recent survey found that while staffing is more affordable in Japan compared with in Germany, sourcing talent is difficult.

“The shortage of skilled labor remains a key challenge: 82% cite the recruitment and retention of qualified employees as their biggest difficulty. Skilled machine and plant operators, technicians, and technical specialists are in highest demand. Moreover, 50% of companies now require English skills for managerial positions in manufacturing,” it said.

The survey, which is the first of its kind, encompasses 34 German businesses in Japan spanning the industries of mechanical engineering, medical supplies and health care, automotive suppliers and chemicals and pharmaceuticals.

OECD Economic Growth: Updated Sept. 29, 2025

OECD lifts 2025 growth outlook on front-loaded output before tariffs

Article source: https://mainichi.jp/english/articles/20250924/p2g/00m/0bu/003000c

Ideas

Yes many countries are going to increase production and or trade before US tariffs come into full effect as way to beat the tariff situation the best they can.

Maybe, as its known now, international trade is not going to be the same, at least for the time being, and or a more liberal leaning president in the US, who understands international trade a little better comes into power.

It sounds good but an estimate of 1.1 percent in 2025, might be a little too optimistic as the Japanese economy usually doesn't even grow that much, but it might happen if the data is correct.

Firm investment is actually part of Japan's GDP so it might be possible that companies have decided to invest as they might feel the Japanese economy is going to grow in the future, despite the tariff situation.

Japan, like most advanced economies now, place a lot of emphasis on corporate earnings as Japan has become more of a western style market economy with stockholder value at the core of many large name-brand companies these days.

The growth of China has been a little less than usual as 4.9 percent is not where it usually is but that's normal for a growing economy as the more it grows, overtime, it begins to grow less and less, and a country needs more resources to continue to grow.

And as usual, like many countries or economies, fiscal spending is used to help the economy grow at times.

Yes, front-loading will not last that long and when the tariff situation actually goes into effect many countries might begin to see investments and trade begin to decrease.

Of course not all trade and investments will disappear but over time there could be a substantial decrease from quarter to quarter or even year to year, which potentially could see many counties' GDP's decrease.

Recently it seemed in the US big tech was spurring the US economy but due to the tariff situation that might change as even big tech in the US is going to be effected by the tariffs.

And US immigration is going to be effected with unfortunately high-skilled labor needed by high tech companies are going to see a significant decrease in workers form countries such as India and China. where many of the high tech workers come from.

The US, overall, just doesn't produce enough high tech workers to meet the needs of US high tech companies, and has been noted, innovation, potentially, is going to suffer in the US.

Yes, despite all of its challenges, the US economy is still the envy of the world. Yes, China is big and somewhat growing but it still can't match the US economy.

Even at 1.5 percent growth for a so-called mature economy its still a growing economy as it hasn't settled into a real mature economy yet for example Japan has or many European countries have, with little or no growth.

Have a nice day!