Japan’s GDP down 0.3% in January

March 7, 2010
By Ken Worsley

According to a report released Wednesday by the Japan Center for Economic Research, Japan’s GDP fell by 0.3% in January compared to the previous month, showing a decline for the first time in two months. January’s figures contrast the 0.3% increase seen in December.

The report notes that while automobiles and electronics sold well in January, they did so due to government stimulus efforts, while overall consumer spending fell by 0.3% as consumers shied away from spending on clothing and other goods not covered by tax breaks or government-sponsored “eco” reward points programs.

The report also showed capital spending falling 1.0% in January, for its first decline in three months. While exports increased for the tenth consecutive month by 1.2%, imports rose 1.4%, and thus the net result of foreign consumption was nil.

Filed Under Economics, GDP