Japan’s economy shrank more cheap feather hair extensions than estimated in the first quarter after the March 11 earthquake and tsunami disrupted production and prompted consumers to cut back cheap fashion spending, sending the nation to its third recession in a decade.
in the three months through March, following a revised 3 percent drop in the previous quarter, the feather hair extensions Cabinet Office said today in Tokyo. The median forecast of 23 economists surveyed by Bloomberg News was for a 1.9 percent drop. Economists typically define a recession as two consecutive quarters of contraction.
The March disaster hit an economy already weighed down by years of deflation and subdued consumer spending and that was reliant on exports for growth. The economy will probably shrink further this quarter before rebounding in the second half as supply constraints ease and reconstruction begins, according to a survey of analyst forecasts by a government-affiliated group.
“The negative economic impact from the disaster will be on full display during the second quarter,” Hiroshi Watanabe, a senior economist at the Daiwa Institute of Research in Tokyo, said before the report. “This recession may be deep, but short.”
The Nikkei 225 (NKY) Stock Average rose 0.3 percent at 9:28 a.m., after the Federal Reserve signaled U.S. interest rates will remain low and commodity prices advanced. The Nikkei has lost 7 percent since the quake and tsunami, which left more than 24,000 dead or missing. The yen traded at 81.70 against the dollar, compared with 81.69 before the report was published.
Highlighting the disaster’s effect on companies, Toyota Motor Corp. said profits plunged while Nippon Stee feather hair extensions l Corp. reported its first net loss in six quarters, after the quake closed plants, cut supply chains and caused power shortage.
Factory output fell by a record and retail sales and exports declined in March because of power shortages spurred by a nuclear accident in Fukushima, northeast of Tokyo, and damage to transportation facilities after the temblor.
“It’s hard to think that companies will become aggressive about increasing business spending when uncertainties remain strong,” said Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo. “Capital spending will likely be in a declining trend as corporate profits may do worse than expected.”
Capital investment dropped 0.9 cheap fashion percent in the first quarter, the first decline in six quarters, today’s data showed.
Consumer spending fell 0.6 percent in the January-March period from the previous three months, today’s report showed.
From the previous quarter, the economy shrank 0.9 percent in the first three months of 2011, today’s report showed. In nominal terms, the economy contracted an annualized 5.2 percent in the first quarter, today’s report showed.
Net exports, or shipments less imports, subtracted 0.2 percentage point from GDP.
The economy will probably contract cheap feather hair extensions 2011 at a 3.3 percent annual pace this quarter, and then resume growth the next two quarters, according to the average forecast of 43 economists in a survey by the government-affiliated Economic Planning Association released on May 16.
Japan’s GDP shrank for four straight quarters during the global financial crisis, and contracted for cheap feather hair extensions three straight quarters in 2001. Consumer prices excluding fresh food costs have dropped every month since March 2009, underscoring the deflationary pressure that has sapped consumer demand.
The GDP deflator, a gauge of price trends, fell 1.9 percent in the first quarter from a year earlier, today’s report showed.
The Japanese government, like the U.S., doesn’t define a recession as two consecutive quarterly GDP declines. The Cabinet Office appoints a committee of academics to determine when recoveries and recessions begin and end.
Toyota Motor, the world’s largest carmaker, said last week that profit slumped 77 percent to the lowest in 1 1/2 years for the three months ended March 31 after the earthquake forced it to halt production and depressed its domestic sales.
Nippon Steel, Japan’s biggest steelmaker, said in April it posted a worse-than-expected loss in the fiscal fourth-quarter after the temblor damaged plants. The company’s output is expected to drop by 7 percent to 8 percent this quarter as damaged carmaker facilities damp orders.
Kan Stimulus
Prime Minister Naoto Kan plans to come up with second extra budget for reconstruction after parliament approved a 4 trillion yen ($49 billion) budget this month. He will need the cooperation of opposition party politicians, who control the Upper House of parliament, to get the second budget enacted. The government in March estimated that damage from the disaster will swell to as high as 25 trillion yen.
Japan’s central bank injected record amounts of cash into the money market after the quake, and doubled to 10 trillion yen a fund to buy assets such as corporate bonds and real estate investment trusts. The Bank of Japan’s policy board last month rejected a proposal by a deputy governor to expand that fund.
Some data suggest that demand may recover earlier than expected after the quake.
Machinery orders, an indicator cheap fashion of future capital spending, unexpectedly increased in March, while companies said they plan to increase factory output in April and May.
Honda Motor Co., Japan’s third-largest automaker, said this week it will return to normal production before the cheap feather hair extensions end of the year as its production has recovered faster than it expected. Toyota Motor and Nissan Motor Co. have also said the recovery in production is quicker than expected.
“We look for a classic 2011 cheap fashion wholesale V-shaped recovery in the July-to- September period and after,” said Kyohei Morita, chief economist at Barclays Capital in Tokyo. “A self-sustaining recovery in production, an increase in government consumption and reconstruction demand centered around public works will likely support the economy.”
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