Japan’s economy slowed more than forecast in the second quarter as businesses cut investment, undermining gains in consumer and government spending that helped reduce deflationary pressures.
Japan’s industrial production rose less than expected as companies from Nissan Motor Co. to Toyota Motor Corp. warned that a yen close to a post World War II high threatens to drag down exports.
The Democratic Party of Japan is considering a pledge to cap bond sales next fiscal year, an indication politicians are becoming more attuned to the nation’s growing debt burden .
Big Japanese manufacturers are the most pessimistic in almost three years after a diplomatic dispute with China and Europe’s austerity measures dragged exports to a fifth monthly decline in October.
Japanese Prime Minister Shinzo Abe looks set to drive an indicator of economic hardship to a 33- year high by increasing taxes and prices amid stagnant wages.
Japan’s trade deficit exceeded analysts’ estimates in February, underscoring drags on the nation’s recovery ahead of a sales-tax increase in April that will weigh on domestic demand.