Sumary of Japan raises view on consumption, downgrades exports in Nov report:
- On that mixed note, the government kept its overall economic assessment unchanged for the second month, while it said full attention should be paid to downside risks from supply constraints and raw material prices.
- Among key economic components, the report raised its view on private consumption for the first time since October 2020, attributing it to improved consumer sentiment and increased spending on services such as restaurants and hotels.
- In addition to carmakers’ output cuts due to a shortage of parts, a slowdown in China’s economy has dampened previously strong orders for production machines, the official said.
- While disruptions in parts supply from Southeast Asia have abated, “supply constraints still require close attention going forward as the semiconductor shortage still lingers,” the official said.
- Japan’s economy, the world’s third largest, contracted much faster than expected in the third quarter by an annualised 3.0% as the pandemic and global supply disruptions hit consumption, capital spending and exports.