Japan Feb. machinery orders: Updated April 21, 2026.

Japan's Feb. machinery orders jump 13.6% on month

Ideas

Japan's core private-sector machinery orders might not sound like an important sector to be concerned about but it shows just how much the Japanese economy is moving forward and or just standing still.

Tracking machinery orders in the private sector just shows how much companies feel about the economy by spending on capital investments compared to not spending which doesn't help the economy grow.

Yes, its quite possible that corporate sentiment, similar to consumer sentiment, might actually be increasing as companies might see and feel the future is getting better and not worse.

But we've seen this before as we see a quarter or two of good corporate spending and then after that its back to being a little more stagnant, the usual pattern in the Japanese economy.

But it's a little too early to celebrate, as again, spending in the Japanese economy is both up and down and never that consistent over a long time period.

Not to be too pessimistic but sometimes data is intentionally omitted, a little, to make sure the financial markets are not completely upset with the results.

The Stock market and the financial markets tend to react to every economic or financial type  of news whether domestic or global or both.

As a result the powers to be that edit and examine the data each month or each quarter will sometimes, as needed, will amend the results as the have new data for the situation.

Again, the Japanese economy is very complex economy like all other economies and all sectors don't increase or decrease at the same time, depending on supply and demand, depending on supply chain situations, and a host of other situations sometimes that the companies in specific sectors can't control.

And even public sectors are prone to ups and downs as sometimes they increase due to political actions and sometimes the decrease due to political actions too.

Have a nice day!

Article source:   https://mainichi.jp/english/articles/20260415/p2g/00m/0bu/025000c

Japan Economy Recovering: Updated Dec. 2, 2025.

Japan says economy recovering moderately, warns of US tariff impact

Article source:  https://mainichi.jp/english/articles/20251126/p2g/00m/0bu/031000c

Ideas

No offense, but most governments use the phrase "recovering moderately," as a way to not upset the financial markets which can easily be swayed in both directions.

And yes, at the same time the US tariff situation might be weighing heavily on the Japanese car sector which might see the profit margins reduced significantly.

Private consumption or consumer spending might be picking up some but to be fair Japan has never been a major consumer spending economy like the US as the Japanese have been more savers than spenders, which while a positive can also be a negative if the Japanese households don't spend enough to support the economy.

At the same time, capital investments are very important for the Japanese economy as most likely the capital investments are coming from Japanese manufacturing companies which might still be considered as economic drivers for the Japanese economy.

Exports might be considered flat but that doesn't mean that they are in negative territory,  although it might be decreasing from a positive zone to a slow growth zone but still stable.

The US governments current trade policy might be affecting many countries and might be affecting it allies even more as its a very conflicting situation at this time.

The Japanese economy never seems to grow that much as its a very mature economy now, which means mature economies either need a lot of resources to grow, significant innovation, or improved productivity within its economy.

Exports have been a positive for the Japanese economy for the past 50 years and might be considered its sole economic driver outside of manufacturing. 

Unfortunately, there doesn't seem to be any other sectors that can significantly help the economy grow other than exports and again maybe manufacturing in Japan.

There is the possibility of foreign tourists and the record numbers entering Japan and spending a significant amount as the weak Japanese yen gives foreign tourists more purchasing power, but at this time its good but still not enough to help  GDP growth that much, but it is improving.

Japanese companies, more than US companies, at least before the pandemic always absorbed their costs as a way to keep as many customers happy as they can and to show good will to their customer base.

But that might be changing in the future as Japanese automakers have significant shareholders who might be more demanding and want to see a significant profit, and if the Japanese car companies keep reducing prices and or keep covering the tariff costs the profit margins of the car companies are going to be reduced significantly.

At the same time, Japanese companies in the US and maybe globally have always considered market share more important than long-term profitability, but again, that might be changing soon as shareholders want to see more profit than market share from their companies.

Its possible that most of the eight Japanese car companies have significant reserves which they can use to help them over-come the tariff situation. And its quite possible as the tariff rate was reduced to 15 percent that might be enough to help most Japanese car companies remain profitable and be able to meet their shareholder expectations during then next quarter.

But the one Japanese car company that might still struggle unfortunately is Nissan which seems to be in the middle of a restructuring period and they might not see a profit over the next year or two.

Yes, again, private consumption or consumer spending might be picking up but its never going to be as robust as US consumers spending is. For example consumer spending in the US is maybe 60 or 70 percent of the US GDP, while in Japan its around 50 percent which might not be enough to help with significant GDP growth which is what the Japanese economy needs at this time.

Business investment, again, might be related to Japanese manufacturing as manufacturing in Japan is still a major sector a major industry, while in other advanced economies the services sector and the technology sector have transformed most economies but in Japan manufacturing is still has a significant presence in the economy.

Imports being downgraded to "almost flat" might mean demand for products from other Asian countries such as China and South Korea might lagging now as maybe for example the smartphones coming out of China, which might have been popular at one time, are not so popular now and the Samsung smartphones coming out of South Korea too might be losing their luster in the highly competitive Japanese domestic market.

There is also the complicated political situation between China and Japan now which might he affecting demand for Chinese products in Japan as maybe Japanese consumers might be less interested in Chinese products at this time, in China many Chinese consumers too might be less interested in Japanese product now.

Producer prices are often increasing but in the past, at least before the pandemic, producers tried to absorb their costs as a way to maintain their customer base. But those days seem a long time ago as now producers are passing-on their costs to the next in the supply chain, and maybe even the final retail customers as their profits margins continue get thinner and thinner as raw material costs continue to increase.

Japanese rice is a different story as the summer of 2024 so-called shortage has kept rice prices at all time high with many super markets continuing to have frequent shortage of rice in Japan.

Rice is a major food staple of the Japanese households and it's strange that the powers-to-be allowed rice prices to become a major challenge for households, restaurants, and supermarkets in Japan.

Have a nice day!

Japan's July- Sept. GDP Decreases: Update Dec. 5, 2025.

Japan's July-Sept. GDP shrinks for 1st time in 6 quarters on weak exports

Article source: https://mainichi.jp/english/articles/20251117/p2g/00m/0bu/010000c

Ideas

Overall, Japan's economy is very stable but it doesn't grow that much as its a mature economy which means there is less growth than growing or emerging economies.

An annualized or real growth of 1.8 percent might seem a positive number but it's just a projection about what might happen for the rest of fiscal 2025 in Japan.

But a decrease of 04 percent is the real number to think about as again the Japanese economy just doesn't grow that much despite its huge size. And there is the challenge with business investments which saw a decrease which might be even more important in Japan than consumer spending.

GDP, these days, still seems to be the most important indicator of economic growth in an economy but it doesn't show or represent what is really happening in the real world of consumers and households.

Not to be critical, but all governments seem to use the phrase "recovering moderately" as a way to ensure or encourage the financial markets to be stable instead of upsetting investors with some bad news.

As far as consumer spending is resilient that can be taken with a grain of salt meaning it might be somewhat good but maybe not as robust as it should be, while capital investment might be in the same situation as being good but not a robust as it should be for Japan to grow.

Private consumption or consumer spending just isn't as robust as it is in the US as Japanese consumers just aren't the big spenders like US consumers have been but even in the US that has changed some due to the continued increase in prices.

Japanese households and consumers, for the most part, have been savers more than robust spenders but might that be changing some as disposable income seems to be eroding some in Japan and maybe even eroding the amount of savings Japanese household have now.

And yes, it seems the US tariff situation has finally hit the Japanese car sector which exports significantly to the US but unfortunately Japanese car shipments are maybe going to see some changes over time as the US tariff situation is going to affect both the export sector and many other sectors in Japan.

Even a tariff rate of 15 percent might be too much for some Japanese automakers and also Japanese car parts makers which is a significant sub-sector in the Japanese economy, as there might be a large number of small and mid-size companies that produce car parts in Japan.

While Toyota and Honda might be able to whether the tariff storm but that doesn't mean the much smaller car companies will be able to do it and even the car parts makers are going to feel very challenged with the tariffs and they might not have the profit margins needed to absorb the tariffs and might have to pass-on the tariffs in the supply chain to whomever in the US.

A decrease of 0.1 percent in import prices might not be seem like much now but its too soon to tell if decreasing import prices are trending down or just a one quarter situation, as import prices have a remained high almost since the pandemic ended.

Housing costs, globally, are getting more and more expensive as material costs increase and the price of houses increased causing many young families unable to afford a new home.

It might not be so much a challenge in Japan for young families and maybe they can still get a new home, but in the US its seem very unlikely now as the cost has skyrocketed since the pandemic.

GDP might return to a recovery path in the October-December quarter but it won't be that much of a recovery as the Japanese economy is being challenged by the US tariff situation, continued inflation, and a continued weak Japanese yen, which potentially is going to keep import prices high.

Yes, its quite possible the diversification of Japanese exports from the US only to much of Asia and to many other economies has been a safety net for Japan companies as maybe they don't have to rely only on the US for their sales and profits.

Japan has always focused on as many markets as possible and for a very long time focused on market share over profits and even more focused on the long-term over the short-term that many companies today have to do because of what shareholders want and need from the companies they invest in.

Yes again, its quite possible the Japanese economy can avert a recession but not by much as it really doesn't grow that much but even a 0.1 percent or even a 0.2 percent GDP growth in the October-December quarter would be good.

With regards to digital devices, its highly unlikely that Japan is manufacturing and exporting Japanese smartphones to another Asian economies as it seems Samsung from South Korea and some of the Chinese brands have most of the market share in smartphone.

Most likely Japan is shipping other devices such as notebook computers or even other devices. At one Japan was the world leader in digital devices but many Japanese companies lost their way and stopped innovating and Chinese, Taiwanese, and South Korean companies have passed them by.

Yes, Japan is already seeing hundreds it not thousands of cancellations in airline fights and hotel bookings which is not only hurting Japan but hurting many of the Chinese tour and airline companies in China too.

It's sad, that Japan always seems to move forward one step and then backward two steps with remarks or actions that cause challenges with South Korea or China.

Its been suggested that the increase in foreign tourists going to Japan and the weak Japanese yen and their spending in Japan is like an economic driver that increases economic growth and growth in the GDP. 

But that might be a slight exaggeration as its going to take a lot more foreign tourists to spend even more to help the Japanese economy grow.

But yes, a decrease in the number of Chinese tourists is going to affect the Japanese economy in a negative way. Even if there is a significant surge in South Korean tourists or Indonesian, or Thai tourists it might not be enough to overcome the loss of Chinese tourists.

Robust demand for beverages during the summer is nothing to really be excited about as seasonal changes in the weather causes consumers to buy more cold or more hot depending on the weather.

And yes, food prices in Japan seem to keep increasing as Japanese companies are now passing-on their raw material food costs to the next in the supply chain, which is often the final retail customer.

Private consumption or consumer spending has never really been that robust in Japan except for maybe the roaring 80's when the Japanese economy was near its peak potentially and was expected to be near the largest in the world or close too it at the time.

Consumer spending in Japan is just too low to really have a serious impact on the Japanese economy as 50 percent of GDP is just not enough as it needs to be around 60 percent to really have an impact on the economy.

Capital investment is very important for the Japanese economy and might be even more important than consumer spending to help lift the economy out of its stagnation phase which it has been stuck in for some time.

But the key to capital investment is what Japanese companies think about the future of the Japanese economy, as if think its going to grow they will invest if not they usually take a wait and see approach.

So a 1.0 percent increase in capital investments is not the greatest as maybe many companies are still taking a wait and see approach and hoping the Japanese economy is going to get better in the future.

To be fair, many previous Prime Ministers also had economic packages to help the economy and help Japanese households but they might have helped in the short-term but in the long-term the packages didn't do much.

And then there is what the Japanese Prime Minister wants and plans and always gets watered down in the Japanese Diet as politics unfortunately, good or bad, can change the plans often.

Yes again in the Japanese Diet the other political parties might have their own ideas about how to improve the economy and until they they debate the ideas in session it won't be known what the exact final economic package will look like.

Nominal GDP is not really that important other than to show maybe how much inflation has affected the Japanese economy, as real GDP is what is important for Japanese consumers and Japanese households as it shows much their their disposable income has increased or decreased and how much purchasing power they have or don't have in the economy.

Have a nice day!

Japan Economy Growth: Updated Sept. 4, 2025

Japan economy grows 1.0% in April-June, inflation weighs on spending

Article source: https://mainichi.jp/english/articles/20250815/p2g/00m/0bu/014000c

Ideas

An economy is a complex organism and it has many different parts or sectors which some see growth and some see less growth. All sectors in an economy are never linear as there are periods of growth and less growth in each.

The Japanese economy rarely see growth beyond 1 percent but even at 1 percent growth that is significant growth for an economy the size of Japan's.

Capital investments are always an important economic indicator for what is going on in an economy as it shows businesses might see the economy improving over time.

But again the major challenge for the Japanese economy is consumer spending as inflation continues to be a major constraint for consumers in Japan.

Yes, the tariff situation might not have been in full effect yet so Japanese exports to the US remained robust for now, but the future might be a little more challenging as Japanese companies might have to start absorbing the tariffs.

Japan might need to re-think its entire strategy with exports as the profits and sales from exports could see significant decreases in the coming months.

Japan is now a mature economy and advanced economy which usually means less economic growth as it takes more resources to grow a mature economy compared to an emerging economy.

As a result even 0.3 percent growth, for Japan, might be considered acceptable as some growth is still better than no growth or negative growth.

Economic data is always being revised as new data become available and all economies always revise their data as needed.

Data should never be taken as complete or static as it's always being looked at again and again to make sure that it's relevant for the situation and always being revised as needed.

Capital expenditures are important for an economy as it shows how much businesses spend just like consumer spending is important for an economy too which of course shows how much consumers spend in an economy.

The fact that software investment might have driven the increase in capital investments might indicate that Japanese companies are finally beginning to take seriously the need to innovate and bring their companies into the 21st century.

And it looks like Japan is becoming, again finally, a semiconductor focused country after losing a lot of market share to Taiwan an South Korea.

Exports in Japan are a major economic driver, which means its contributes a lot to the economic growth of the Japanese economy.

But the future of exports in Japan are clouded as the tariff situation with the US is still very unclear as to what is going to happen exactly.

Japan car companies are now using different strategies to overcome the tariff situation such a reducing prices on cars to the US, offering different models than before as a way to stimulate sales and try to keep profits high.

Many years ago the strategy of Japanese export companies to the US were always focused on improving market share and always offered low product prices. 

But those days are long gone as Japanese companies can't afford to keep prices low for too long without compromising their profit margins.

Japanese car companies, along with all of the smaller car-parts companies in Japan employ a  lot of workers and if profits are decreased too much then yes, salaries and employment will be effected along with consumer spending from those who who work for car related companies.

The GDP formula is consumer spending + business investment spending+ government spending + exports -imports, which means imports actually decreases what the initial GDP might have been with just exports.

Imports reduce an economies current account, which is like an economies bank account, and in Japan's case as it its a resource-poor country has to import much of what it needs which means it can have a significant effect on Japan's GDP growth.

And yes, the tariff agreement might not be as bad as first expected but its still not going  exactly in Japan's favor and will affect the amount of exports from Japan to the US.

Yes, the July-September period potentially could see negative growth as maybe Japan is too reliant on exports as it really doesn't have any other economic drivers at this time.

Private consumption, or consumer spending, which is about 50 percent of Japan's GDP is not up to the task of helping the economy or overcoming the drop in exports as inflation continues to effect Japanese consumers.

And then add it the low wages for workers in Japan and they really don't have enough disposable income to spend like US consumers do, which makes up about 60 percent of the US GDP.

The Japanese economy is dealing with many years of Japanese companies not giving adequate pay increases to their employees and now the economy is suffering from low consumer spending due the fact that Japanese consumers just don't have the disposable income they need as they haven't had adequate pay increases for many many years.

Its might take a few more years with increased pay wage increases for Japanese consumers to finally feel good enough to really start spending again, but again it's going to take several years for the pay increases to have some kind of effect on the Japanese economy.

Nominal GPD is not really important as what is important is real GDP as real GDP shows what the consumers purchasing power really is in an economy, meaning how much money does a consume really have to spend and more important how much disposable income do they have to use in the economy.

Have a nice day!

Japan and Tariffs: Ideas Later: Updated Aug. 11, 2025

Japan warns of US tariffs after trade deal reached: monthly report

Article source: https://mainichi.jp/english/articles/20250729/p2g/00m/0na/041000c

Ideas

The Japanese economy doesn't grow very much and now with the tariff situation finished its going to grow even less, unless Japan can find some new economic drivers.

Even though Japan got a trade deal better than expected it's still going to have an effect on the Japanese economy but not as bad as expected.

The Japanese government is always saying the domestic economy is recovering moderately a as a way to not upset the financial markets.

Consumer might be picking up but Japanese consumers will never spend like US consumers do and maybe cultural differences make up a big part of it.

And it quite possible due to a labor shortage in Japan there might be more hiring now and companies are possibly increasing wages to keep workers and get new workers.

And its very good that the tariff deal removed the uncertainty in the marketplace as now companies have a better idea of what is going to happen and they can begin to plan accordingly.

Yes, even large Japanese companies, such a car markers have to worry about their profit margins and profitability as they are always concerned about their stockholders and what they think.

Back in the day, when Japanese car makers first entered the US market they relied on cheap cars just like other Japanese companies and they didn't worry about profits but only increasing their market share in the US. Those days are long gone of course.

Exports are never a complete linear upward thing but sometimes there are going to be ups and downs due to many variables relate to international trade.

Exports are an economic driver for the Japanese economy which is good but Japan has not been able to create any new economic drivers to help the Japanese economy grow.

Some might say foreign tourists coming to Japan and spending large amounts of money might be an economic driver but so far it hasn't helped that much.

It has to be remembered that only 30 percent of Japanese workers work for large Japanese companies and 70 percent of Japanese workers work for small and mid-size companies.

Wage increases for small and mid-size company workers were not the same as large company workers which could be a major challenge for the Japanese economy.

Yes, the tariff situation could have a major impact on the future growth of the Japanese economy, which has enough challenges without the tariff situation.

Again, the Japanese economy before the tariff situation was not in a good place and now its going to be in a even more challenging place.

If sales or profits are not what companies expect in the future, they might not hire as many workers and also at the same time might put off capital spending which is a big part of Japan's GDP.

And there is the constant challenge of private consumption or consumer spending which has never been that good in Japan except for maybe in the 70's and 80's when the Japanese economy was in its boom years.

The Japanese government and the Bank of Japan has to come up with some very creative ways to try and reduce the affects of the tariffs on the Japanese economy,

So to be fair the BOJ and the Japanese government haven't been able to steer its way out of the current stagnant state of the Japanese economy yet so there is not a lot of confidence that its up to the task related to the tariff situation.

Have a nice day!

Japan Capital Spending: Updated June 4, 2024.

 

Japan capital spending grows 6.8% in Jan.-March, up for 12th qtr

Article Source:  https://mainichi.jp/english/articles/20240603/p2g/00m/0bu/008000c

Ideas:

Capital spending is not like consumer spending, as companies have to spend a lot on the needed equipment, or new buildings, or new factories for their business.

Large name brand companies of course usually have the resources needed for capital spending but small and midsize companies might not have the available resources and have to limit their capital spending.

Labor shortages might be a challenge for some companies as they might have the labor needed to run the extra machines that a company orders or new factories that a company wants to add.

The weak yen can have some positives and or course it can have some negatives too, such as a weak yen might help Japanese exporters but hurt Japanese importers.

Some time ago, many Japanese companies were reluctant to pass on their increased costs to the next in the supply chain, but these days companies feel they have no choice but to pass on their costs.

The Bank of Japan has to make sure that the yen is maybe balanced to the point, if at all possible, where both Japanese importers and Japanese exporters can see some benefit, but that might not really be possible.

Not to criticize, but it seems there are two competing ideas here. For example the headline reads "capital spending grew 6.8%", while the above line says a"0.8 percent drop in capital investment."

But yes, the latest news indicates the Japanese economy did shrink, again, which it sometimes does, but even a 0.8 percent decrease is not that much for the 4th largest economy in the world.

And, again, the idea that the Japanese economy shrank is not news or not that much of a shock as the Japanese economy has been stagnant for the better part of three decades.

So lets continue on with the idea that capital spending increased and not decreased in the Japanese economy.

But again, there could be a variance between large and small companies, as usual, as the large companies have the needed resources to increase capital spending while the small companies might be limited in how much they can spend on capital spending.

Regarding labor shortages, and robust profits, companies might be increasing wages as a way to reduce labor shortages as new workers or workers looking to change jobs are looking for better pay/wages, as they know companies now are willing to pay more.

Inbound tourism, or foreign tourists going to Japan, might be the main economic driver at this time, as they spend a lot in the Japanese economy, and service sector companies are able to recover from the pandemic, which hit them very hard, compared to the manufacturing sector.

And yes, rising costs, might be the reason for the increase in capital spending as new equipment, new buildings, and so on have seen increased costs most likely due to the weak yen.

And yes, again, maybe many small and midsize companies related to the cost of new equipment, buildings, factories, and so on might have to limit what they spend related to such things.

Again, not to criticize, but the phrase continuing to "recover moderately" seems to used a lot in these articles, as way to make sure the Japanese financial markets remain calm and don't panic.

The main economic slowdowns seems to be in the EU and of course in China, as the US seems to be moving along with minimal disruptions.

The Japanese economy is far from where it should be, but at the same time, its a very stable economy, as its not like Argentina or even like some of the EU countries.

But the Japanese government and the Bank of Japan needs to stay the course on wage increases and maybe even tweaking the key rate some to move it closer to where the US is so that the Japanese yen can get a little stronger but not too strong.

Have a nice day and be safe!

Japanese Company Capital Spending: Updated Feb. 10, 2024.

 

Japan firms step up spending by 3.4% in July-Sept., growth slows

Article Source: https://mainichi.jp/english/articles/20231201/p2g/00m/0bu/020000c

Article:

TOKYO (Kyodo) -- Capital spending by Japanese companies from July to September increased 3.4 percent from a year earlier for the 10th straight quarter of gain, but growth slowed further in a worrying sign for the economy, Finance Ministry data showed Friday.

Investment by all nonfinancial sectors for purposes such as building factories and adding equipment totaled 12.41 trillion yen ($84 billion). Capital spending is a key gauge of domestic demand.

The slowing pace of increase from the 4.5 percent in April-June adds a layer of uncertainty to the outlook, despite many firms planning to ramp up spending for the current fiscal year to next March as the shocks of COVID-19 and supply disruptions ease.

Ideas:

Capital spending is never linear, meaning that it doesn't happen every week, every month, or even every quarter, as companies choose certain times a year to spend.

Just because capital spending might have slowed down doesn't mean the economy is getting worse, as companies, again, sometimes wait for a specific date or month to spend on capital investments.

And yes, there might be some companies, due to market conditions, might decide not to spend in this fiscal year, ending in March 2024, but instead wait unit April 2024 to begin their capital spending.

Article:

Transport equipment makers and chemicals firms ramped up investment to boost their output capacity, while service providers also increased spending.

Pretax profits rose 20.1 percent to 23.80 trillion yen, a record for the quarter, helped by the weaker yen, according to the ministry data.

"Companies have bullish capital spending plans (for the current fiscal year) but the actual numbers suggest they remain cautious," said Yuichi Kodama, chief economist at Meiji Yasuda Research Institute.

Ideas:

Most companies are cautious, and if an economic or market situation is not in their favor, they might wait to spend.

However, there are some companies, despite the market conditions not being favorable, or the economy not being favorable, think its the best time to spend and then when situations become favorable they are in a better position to take advantage of the market.

Service companies, capital spending is a little tricky and or unclear as what might be capital spending might be operations spending, and for service companies the definitions can become blurred.

For example, is remolding the inside of a department store an operational expense or is it a capital expense?

Article:

"This is because of weakness in the Chinese economy and the lingering impact of parts shortages. Companies are also short on labor, which is negative when they want to boost investment and raise output," Kodama said.

The capital spending figure will be used to revise gross domestic product data for the same period, which will be released next Friday.

Japan's economy shrank by an annualized real 2.1 percent in the July-September period, marking the first contraction in three quarters, hurt by weak capital spending and private consumption.

Ideas:

The weakness with the Chinese economy, of course, is causing concerns for Japanese companies who might need to upgrade their capital situation, such as equipment investments, building investments and so, but because of the uncertainty with the Chinese economy, they might be waiting to see what is going to happen.

Japan's economy, in annualized terms, might have decreased 2.1 percent, but that is an estimation for the rest of the year, if conditions remain the same, which it never does. 

Its a one time look at the Japanese economy and the next quarter could be completely different, with improved economic growth.

Private consumption or private spending, is always a challenge as Japanese consumers don't spend like US consumers. 

Private spending might be 50% of Japan's GDP or maybe a little more at 60% but that is still lower than consumer spending in the US.

Article:

Kodama expects the GDP figure to be revised upward, though the economy still marked negative growth.

Weakening domestic demand has raised concern about the economy, which has been underpinned by catch-up demand following the removal of anti-COVID-19 curbs.

"The data shows that Japan's economy is recovering moderately," a ministry official said. "We will pay attention to the impact of a slowdown in the global economy and inflation on firms."

Ideas:

In one situation there is weak domestic demand and in another situation the Japan economy is recovering moderately, So which is it exactly, weak or recovering moderately, or a situation where its both. 

If you look at the US economy, its the bright light right now for the global economy, as economic growth is up, inflation is down to 2 percent, and jobs are being added at record numbers.

Of course that can't be said about Europe and especially Germany, which has its own domestic challenges.

And not to forget about China and its domestic challenges, which Japanese companies are heavily invested in.

Article:

Sales grew 5.0 percent to 367.74 trillion yen, up for the 10th straight quarter.

It came despite the manufacturing sector reporting its first drop in two quarters. Demand fell for personal computers and smartphones, and overall external demand also weakened amid aggressive rate hikes in major economies to fight inflation and a slowdown in China.

As automakers continued to benefit from the easing of parts shortages, the transport sector was a major winner in terms of sales and pretax profit growth.

Ideas:

Sales growth is always good, but at the same time what about operational expenses such as energy costs and raw materials costs.

Manufacturing, as had been mentioned in many article, has had periods of slowdowns due to supply chain challenges, such as the Toyota group of companies.

Demand might have decreased for personal computers and smartphones, but are these Japanese computers and Japanese smartphones or are the products from overseas being sold in Japan such as at Yodobashi Camera, a major electronics store in Japan. 

At Yodobashi Camera, they a complete floor of Apple computers and Apple I phones, which is the most popular products in Japan.

Despite the Toyota group having some challenges, it seems that Japanese automakers are headed in the right direction, with sales up in most of the eight major Japanese automakers.

Article:

Food companies that have been able to pass on increased costs to consumers also reported increased profits.

Rising prices of everyday goods, however, have dampened consumer sentiment and the government has compiled fresh inflation relief measures to ease their pain by cutting fuel costs and seeking to boost disposable income through tax cuts and cash payouts.

The ministry surveyed 32,557 companies capitalized at 10 million yen or more for the quarter, of which 22,920, or 70.4 percent, responded.

Ideas:

For many years, if not decades Japanese food companies were reluctant or even afraid to pass on their increased costs to the customer for fear of losing significant customers.

But now they have no choice as their profit margins have continued to shrink and they need to pass on their costs to stay in business.

Of course the prices of everyday good, including supermarket goods continue to increase and Japan is a resource-poor country, and has to import much of what it needs.

At at the same time consumer sentiment, or how consumers feel, continues to get worse, and its not surprising that they maybe pick and choose what they only need and not buy other products they might want.

Cutting fuel costs is good but is it enough? It might help with home energy costs and gasoline prices, but will it increase the needed disposable income for Japanese families, which might save the relief measures which might have helped instead of spending the extra disposable income in the economy. 

Have a nice day and be safe!