Japan’s firms, particularly its 5,000 largest firms, have mastered the art of producing growth in profits without growth in sales. They’ve done this by cutting costs, particularly labor costs.
Japan-watchers got very excited because core private machinery orders in October were up 10% on a month-on-month basis, However, the monthly movements in orders have very large gyrations, even though the most volatile elements are removed from core orders. Bottom line: core orders could be a genuine “green shoot,” or one month’s surprising number may be misleading us.
Data Round-Up: Regionals Show Solid Services, Some Mfg Improvement in 15Q2; Home Price Gains Healthy
FMI’s analyses of this morning’s June Chicago PMI and other Regional Business Surveys and April Home Prices data.
FMI’s analysis of this morning’s March Durable Goods Orders report.
FMI’s analyses of January Vehicle Sales and the January Non-Manufacturing Index.
Richard analyzes the reason behind Japanese multinational companies' growing trend to produce in overseas countries, especially in Asia, despite the weakening yen.