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Recession fears grow in Japan
30.09.08
Japan's industrial production fell at the fastest pace in at least five years in August, its unemployment rate rose and household spending crashed as the economy continued to slow.
Factory output dropped 3.5% from July, the Trade Ministry said today, while unemployment rose to a two-year high of 4.2%. Retail sales slumped 4%.
Economists say the economy may already be in recession as weaker exports to the US hammer manufacturing giants such as Toyota, Honda and Nissan and the global financial crisis erodes what little consumer confidence there was.
Exports to the US plunged by the most on record in August.
Economic and fiscal policy minister Kaoru Yosano said the rejection of a $700 billion plan to rescue the financial system would have a "significant effect" on the global economy.
The trade ministry says a survey of manufacturers suggests that production will rebound 1.6% in September before slipping 0.1%.
