Friday, September 11, 2009

Japan’s Economy Grows at 2.3% Pace, Less Than First Estimated

Sept. 11 (Bloomberg) -- Japan’s economy unexpectedly grew less than initially estimated in the second quarter as companies cut spending and stockpiles fell.

Gross domestic product expanded at an annual 2.3 percent pace in the three months ended June 30, slower than the 3.7 percent reported last month, the Cabinet Office said today in Tokyo. Economists surveyed by Bloomberg News forecast the figure to be unchanged from the preliminary estimate.
Today’s report shows Japan’s recovery from its deepest postwar recession is even weaker than previously thought, and intensifies pressure on the incoming government, led by Yukio Hatoyama, to resuscitate household demand. With unemployment at a record high and one-third of factory capacity idle, Japanese growth may depend on overseas demand.

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