9 October 2001, 09:38 MOF cuts economic assessment
TOKYO, Oct. 9 (Kyodo) - The Finance Ministry on Tuesday reported
a more dismal assessment of the state of the economy, citing slack
consumer spending and corporate investment as well as deteriorating
corporate earnings and record-high unemployment.
"In general, conditions are more severe" the ministry said in
summing up economic assessments by its 11 regional finance bureau
chiefs.
It is the third time in a year that the ministry has downgraded
its economic assessment.
In the previous report in June, the ministry said economic
weakness increased further as a whole.
All participants at the meeting of local finance bureau chiefs
cut their assessment of local economies.
In a sign of the negative impact of a slowing U.S. economy on
exports, Makoto Hosomi, chief of the Tokai Finance Bureau, reported
a fall in exports in volume terms of autos and machine tools at
local manufacturers.
The Tokai region includes a major industrial belt stretching
from Shiuzoka Prefecture to Aichi Prefecture, where many major
manufacturing plants are located, including those of Toyota Motor
Corp.
"There has been an increase in severity in the regional
economy, mainly in corporate activity, and there is growing
uncertainty about future economic prospects due to international
economic trends," Hosomi said in his report on the economy in the
Tokai region.
As the tourism industry is being hit hard by weak consumer
spending, Shoji Kodama, chief of the Hokuriku Finance Bureau,
reported a sharp fall in the number of tourists to major hot-spring
resorts.
The local finance bureau chiefs meet once every quarter to
exchange views on economic conditions.
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