TOKYO: The Japanese government raised its assessment of industrial production for the first time in a year in further evidence of an economy growing at a steady pace, thanks to a strong tailwind of upbeat external demand.
That positive impulse to growth was also underscored by the government’s upgrade of capital expenditure, the first in six months and signaled booming earnings for Japan Inc.
The monthly economic report for December backs revised data earlier this month that showed the world’s third-biggest economy grew twice as fast as originally estimated in the third quarter, bolstered by a business spending splurge and buoyant exports.
It also marked the seven straight quarter of expansion for the economy, the best uninterrupted run of growth since 1994.
The Cabinet Office left unchanged for the seventh month in a row its moderately upbeat overall assessment that the economy remains on a recovery path helped by consumer spending and business investment.
“Japan’s economy continues to recover moderately as a trend,” it said.
Industrial output is “gradually expanding,” the government said, an upgrade from last month’s assessment that output is “recovering.”
It said capital expenditure is also “gradually expanding,” a more positive view from November supported by increased investment in hospitality and manufacturing.
The value of capital expenditure in the third quarter exceeded the peak seen before the global financial crisis, which is a sign that business investment has recovered, a Cabinet Office official told reporters.
The government retained its view on private consumption, saying it is “picking up moderately,” and similarly on trade it kept intact its assessment that exports are “picking up.”
Moving the other direction, the housing sector was downgraded — the first such lowering in almost a year due to a decline in construction of homes and flats.
The overall thrust of the report ties in with a flurry of data over the past month or so showing Japan’s economy is humming along nicely, an encouraging sign for policy makers as they try to vanquish years of falling prices and sub-par growth.
Japan’s government is expected to approve on Friday a record ¥97.7 trillion budget for the 2018/19 fiscal year, government sources.
The budget will spend more money on childcare and vocational training to keep more workers in the workforce and keep the economy growing into next year.
Japan government raises assessment of industrial production in nod to growing economy
Japan government raises assessment of industrial production in nod to growing economy
Egypt’s annual inflation falls to 10.3% in December: CAMPAS
RIYADH: Egypt’s annual headline inflation rate slowed sharply to 10.3 percent in December, down from 23.4 percent in the same month a year earlier, official data showed.
According to the Central Agency for Public Mobilization and Statistics, the overall consumer price index reached 264.2 points in December. On a monthly basis, inflation rose marginally by 0.1 percent.
CAPMAS attributed the annual deceleration primarily to a decline in food prices, including a 1.1 percent drop in meat and poultry, 1.2 percent in dairy, cheese and eggs, 1 percent in fruits, 2 percent in vegetables, and 0.1 percent in sugar and sugary products.
Prices of household appliances, audio-visual equipment and information technology devices also declined by 0.5 percent and 0.4 percent, respectively.
However, other categories recorded increases, including grains and bread by 0.1 percent, oils and fats by 0.3 percent, and beverages such as coffee, tea and cocoa by 0.1 percent.
Month-on-month inflation showed limited movement, with food and beverage prices falling by 0.8 percent due to similar declines in meat, dairy, fruit and vegetable prices. In contrast, modest cost increases were recorded in grains, oils and beverages.
Alcohol and tobacco prices rose by 0.2 percent, while clothing and footwear increased by 0.7 percent, driven by higher prices for fabrics, up 1.6 percent, ready-made garments, up 0.4 percent, and footwear, up 1.6 percent.
Housing and utilities recorded an increase of 1.5 percent, reflecting a 1.9 percent rise in actual rents, a 1.6 percent increase in electricity, gas and other fuels, and a 0.5 percent rise in maintenance costs.
Furniture and household equipment prices climbed 0.9 percent, while healthcare rose by 0.5 percent, led by outpatient services, up 1 percent, and hospital services, up 1.8 percent. Transport costs increased by 0.2 percent, and recreational and cultural services rose by 0.6 percent, including a 1.5 percent increase in organized travel.
Annual inflation data showed a broad-based increase across most sectors. Food and beverages rose by 0.9 percent year on year, with fruits up 22.6 percent, despite a 4.1 percent decline in meat and poultry and a 4.8 percent drop in vegetables.
Alcohol and tobacco prices jumped 18.2 percent, while clothing and footwear climbed 14 percent. Housing and utilities surged 22.5 percent, largely due to higher rents and energy prices.
Healthcare recorded one of the highest annual increases at 23.9 percent, driven by a 28.9 percent rise in medical equipment prices and a 21 percent increase in hospital services. Transport costs rose by 21.1 percent, education by 10 percent, and restaurants and hotels by 13 percent.
The category of miscellaneous goods and services registered a 12.2 percent annual increase, with personal care products rising 13 percent and personal belongings up 27.2 percent.
