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Core machinery orders at record lows, bankruptcies still soaring

July 8, 2009
By Ken Worsley


Earlier today, the Cabinet Office announced that core machinery orders in Japan fell 3.0% in May, to 668.2 billion yen. Although this is less than the 5.8% drop seen in April, it still means that machinery orders have fallen to a new all-time low. May was the third month in a row that core machinery orders have fallen.

Clearly, the Japanese economy is not performing as many expect it to, as Nikkei and Dow Jones polls of economists had predicted a 2.0% rise in May core machinery orders. Capital spending still appears to have no predicatoable recovery date in sight, and the figures announced today are going to have a further negative pull on Japan’s second quarter GDP figures.

At the same time, more and more Japanese firms are going bankrupt. A report released today by Tokyo Shoko Research shows that in June, 1,422 firms with debts of 10 million yen or more went bankrupt in Japan. This is an 18.2% increase from May, and is the highest number of June bankruptcies seen since 2002. The 1,422 bankruptcies in June was a 7.4% increase on June 2008.

Tokyo Shoko Research also released a separate report detailing bankruptcies for the first half of 2009. This report showed 8,169 bankruptcies in the six months to June 30, with a total of about 4.7 trillion yen in liabilities. The number of bankruptcies was up 8.2% on the 7,544 seen in the first half of 2008, while the value of liabilities left behind was up 47.3% from last year.

The debate now turns to whether or not the Bank of Japan should take further measures to help boost corporate borrowing in the coming months.

Filed Under Bankruptcy, Cabinet Office, Economic Reports 

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Comments

3 Responses to “Core machinery orders at record lows, bankruptcies still soaring”

  1. Japan’s Economy Continues to Collapse, No End to the Depression ! « Socio-Economics History Blog on July 11th, 2009 12:53 pm

    […] the Japanese economy is not performing as many expect it to,” reports the ever-invaluable Japan Economy News.   No fooling. Rising 54% to new monthly highs from the first-quarter of 2002 to the start of 2008 […]

  2. MT on July 12th, 2009 1:14 am

    I don’t understand how the mainstream media continually publishes predictions that have no base in reality and continue to get away with it. Why does no one call them on their bullshit?

  3. Markedsrealisme: - Å få den globale økonomien opp vha. Stagflasjon? | Motion on July 19th, 2009 5:01 am

    […] “Clearly, the Japanese economy is not performing as many expect it to,” reports the ever-invaluable Japan Economy News. […]

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