Junichi Makino
Junichi Makino
believed demand downside fall largely later risk since sooner vehicles
But since such reconstruction demand will weaken sooner or later and demand for new vehicles in the US is largely believed to fall this year, I must say there may be some downside risk going forward.
economy male overall pick recovery sign spending strong
Because male spending is really the slowest to pick up, a recovery there is a strong sign that the overall economy is doing very well.
absorb basic companies corporate entire further growth impact japanese longer material negative prices profit revenue rising slow trend
As Japanese companies can no longer absorb the entire negative impact of rising basic material prices with revenue growth, corporate profit trend will slow down further going forward.
goods high imports investment running trend
There is uncertainty over the trend of imports of IT (information technology) goods in the US, where IT investment is running at a historically high level,
activity companies cost demand economic goods input japanese machinery overall overseas slow supported
Overseas demand for autos, IT goods and construction machinery which had long supported the overall economic activity in Japan, is now set to slow down, while input cost for Japanese companies is rising.
although bound demand extent japanese lesser output peak slow vehicle
New vehicle demand in the US is bound to peak out this year, which may slow output for Japanese (automobile) makers, although to a much lesser extent than US makers.
corporate costs economy economy-and-economics higher impact main
The impact on the economy isn't really that big. The main impact is that of the higher costs on corporate profits.
demand japanese peak poised rather sooner vehicle weigh
New vehicle demand in the US is poised to peak out sooner rather than later, which may weigh on demand for Japanese (automobiles).
companies cutting effects hikes jobs minimal number relying wage
The effects of the wage hikes will be minimal as companies are cutting back on the number of jobs on payrolls, relying more on part-timers.
capital causing continue direct domestic effect high higher imports japan oil prices shrink sluggish spending strong surplus trade
The trade surplus will continue to shrink because of higher oil prices and sluggish exports. The direct effect of high oil prices on Japan is negligible and domestic capital spending is strong which is also causing imports to rise.
areas cars demand due exports fuel hit japanese last likely lingering solid until year
Due to lingering reconstruction demand in areas that were hit by hurricanes last year and brisk demand for Japanese cars that have better fuel efficiency, exports to the US are likely to be solid until around mid-2006.
decline economy exports factor growth high information japanese key level maintained products relatively sent technology
Exports have maintained a relatively high level of growth because the decline in exports of information technology products has bottomed out -- the key factor which had sent the Japanese economy into a lull,
conditions count demand economic export global japan overseas remain solid
Export demand is really solid now. Japan can count on overseas demand as long as global economic conditions remain favorable.
concern deficit demand domestic good holiday led partly resilient signals strong year
A deficit because of the Lunar Year holiday is a blip and isn't a concern for the economy. While strong domestic demand is fueling import growth, which partly led to the deficit, it's a good thing because it signals resilient demand.