The data suggest Japan's economy will post "solid positive growth" in April-June after the worst performance in decades in the previous quarter, said Takuji Aida, from investment bank UBS. "Production is rising as demand from is holding up.
In May, Japan enacted a record 13.93 trillion yen ($146.3 billion) extra budget to fund fresh stimulus measures, including subsidies for eco-friendly autos and electronics, as well as unemployment aid to curb the fall in household spending, as the country's jobless rate continued to climb.
Worldwide pump-priming efforts, particularly in the United States, China and Japan, appear to be showing some positive effects, but there are concerns about the outlook once the impact of the stimulus spending measures fade. Consumer spending remains clouded but Japan is to release April-June gross domestic product data on August 17. (Yahoo News)