9 January 2004, 09:11 Japan recovery lost speed in November, figures show
TOKYO, Jan 9 - Japan's economic recovery lost
momentum in November as inventories of some products rose and
unusual weather disrupted consumer spending, government figures
suggested on Friday.
The diffusion index of leading economic indicators for
November fell to a preliminary 44.4 from a revised 90.0 a month
earlier, below the boom-or-bust level of 50 for the first time in
seven months.
The 50 line marks the difference between expected expansion
and contraction.
"We can't say the figures were strong in November, but we
need to wait for more data before we can draw firm conclusions,"
a Cabinet Office official told a briefing.
The official said a rise in inventories was one of the main
factors behind the decline in the diffusion index.
Warm winter weather had pushed up inventories of heating oil,
while car manufacturers had stockpiles of new vehicles awaiting
shipment, the official said.
The weather was a drag on retail sales components of the
index, with sales of winter clothing slow because of the higher
temperatures.
The durable goods index also slipped from the previous month
as no new car models were released in November, the Cabinet
Office said.
The leading index, measured on a scale of 100 and compiled
using data such as new job offers, consumer sentiment and Tokyo
share prices, is taken to signal economic conditions for the next
few months, though it is considered volatile.
The coincident index, which indicates current economic
conditions, was at a preliminary 77.8, down from a revised 100.0
in October, the Cabinet Office said.
The Cabinet Office revises the indices several times before
issuing final figures.//
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