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Japan data confirms economy shrinks 0.9% in July-Sept

Published on Dec 10, 2012 9:18 AM
 
A man walks down a flight of stairs at a business district in Tokyo Nov 12, 2012. Japan's economy shrank 0.9 percent in the three months to Sept, marking the first contraction in three quarters, adding to signs that slowing global growth and tensions with China are nudging the world's third-largest economy into recession. -- PHOTO : REUTERS

TOKYO (REUTERS) - Japan's economy contracted for a second straight quarter in July-Sept, revised government data showed on Monday, indicating that weak global demand nudged the export-reliant economy into a mild recession.

Analysts expect another quarter of contraction in the final three months of this year due to sluggish exports to China, keeping the Bank of Japan under pressure to loosen monetary policy as early as this month.

"There have been some positive indicators out in October but there is still a good chance that Japan's economy will suffer another contraction in the October-December quarter," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.

"The Bank of Japan may ease policy this month, as suggested in remarks by Deputy Governor Kiyohiko Nishimura last week. The bias is for further easing, so even if the central bank stands pat this month it will likely act in January."

 
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