Abe likely to gain clout from elections--temporarily.
As we detailed in yesterday’s Alert, Prime Minister Shinzo Abe’s approval ratings have resume the steady slide that was temporarily interrupted by the Cabinet reshuffle in September. We suspect that his support remains “a mile wide and an inch deep.” If there were a solid alternative, either inside the LDP or from the opposition parties, we suspect his approval ratings would be even lower.
The New York Times reported today that, according to Japanese officials, the two countries are working on an agreement for at least a photo op, and perhaps a 15-minute non-substantive meeting between Prime Minister Shinzo Abe and Chinese President Xi Jinping during APEC.
September was not a good month for Abenomics. That meant it was not a good month for Prime Minister Shinzo Abe either. The bump in the polls that Abe received following his Cabinet reshuffle a month ago has already begun to fade. Consider these shocks to the credibility of Abenomics.
TOE Alert: Unexpected Fall in Industrial Production Leads Economists to Revise Downward Their GDP Forecasts
Japan's Industrial production fell 1.5% in August from July; economists had expected a 0.3% rise
Once again in August, the post-tax hike retrenchment in consumer spending continues to be far worse than expected, as do wages and overall consumer income.