Double Data Whammy For Japan As PMI Tumbles & Industrial Production Misses By Most Since Abenomics

Tyler Durden's picture

"It's always darkest before the dawn," we are sure will be the next idiotic (and wholly unsupported) bullshit line from various Japanese leaders about yet another round of disastrous Japanese data. Aside from June 2013, this is the biggest monthly drop in Industrial Production since the Tsunami - and biggest miss since Abenomics began. Good news right? More stimulus right? Not with inflation surging thanks to the collapsed currency. But wait, there's more 'great' news, Markit PMI just had its biggest 2-month drop in 20 months and is at its lowest in 6 months. For now, JPY is confused (and so is the Nikkei) but US futures aren't, they are rallying; because, well - why not, the casino is still open for now.

 

Industrial Production... spot the silver lining...

 

And Japan PMI...

 

Is it any wonder the Japanese are increasingly scrambling to prepare for the failure of Abenomics and are buying gold in size... that and the pending rise in Japan's consumption tax for gold from 5% to 8% (a retail consumption tax that Japan imposes unlike most countries)...

 

So to summrise in the last few weeks:

Miss

  • PMI (dropped again)
  • Industrial Production (huge)
  • Household Spending (huge)
  • GDP
  • Current Account Balance (huge)
  • All Industry Activity
  • Capital Spending
  • M3
  • Machine orders YoY (growth slowed)
  • Trade Balance (huge)
  • ECO Watchers Survey
  • Leading Index
  • Labor Cash Earnings (big)
  • Bank Lending
  • Exports

but...there was some positives...

  • Jobless rate (small beat)
  • Small Business Confidence (?)
  • Bankruptcies dropped
  • Imports (but that may not be a good thing)

And

  • CPI (hotter than expected) which means any hopes for moar stimulus has a major problem.