Find the silver lining in this utter disaster... and remember, it's not moar of the same QQE as the BoJ is starting to hit its inflation mandate, misery indices are soaring, and approval ratings tumbling. Japanese Industrial Production in June fell 3.3% (almost triple the expected 1.2% drop) and the biggest plunge since March 2011 (the tsunami). This is the 10th miss in the last 12 months.
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Simply put, while the progressives would dearly love it not to be true, Abenomics is an epic fail leaving Japan readying itself for yet another lost decade (if it makes it that far without Abe going full militarist).
Things are so bad, even Japanese officials have to admit it...
- *JAPAN TRADE MINISTRY CUTS OUTPUT VIEW, FIRST CUT SINCE SEPT '12
And Goldman officialy gives up:
The figures prompted the government to revise down its assessment of industrial production from “appears to be flat” to “has weakened.”
The post-tax-hike correction has exceeded the expectations of the government and the BOJ by a considerable margin. In view of our outlook for a slump in real wages and a resultant delayed recovery in domestic demand, we had been looking to external demand to drive economic growth in FY2014.
However, prospects of recovery appear to be diminishing as a result of protracted weakness in China and other Asian economies and a decline in corporate Japan’s structural export capacity.
Recession is coming to Japan as Q3 2014's unbelievable hockey-stick for GDP seems totally unattainable based on recent data...
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Charts: Bloomberg
