Friday, May 29, 2009

Japanese production climbs fastest in 56 years - gasp - could this be a recovery?

Manufacturers predicted further gains in May and June. -

SHOOT: It's all very confusing isn't it. South Africans are 'shocked' to find themselves 'suddenly' in a recession. But a 'recovery' is due this year (they say) and yet others say this could be the worst economic situation the world has ever seen, worse than the Great Depression. Seems like there is so much noise (conflicting noise) no one can tune into the actual signal. Which is why blogs like mine exist. As I've said before, we are due for a permanent contraction, which means any talk of recovery is imbecilic. We may see pseudo recoveries and temporary surges, but we won't see conventional economic cycles. We'll see protracted downturns across the board.

Factory output surged a stronger-than-expected 5.2 percent in April from the previous month, rising for the second straight time and marking the biggest increase since March 1953. Manufacturers predicted further gains in May and June.

Companies making electric parts, chemicals and transport equipment posted particularly strong gains. But the pain continues to deepen for workers and consumers. The jobless rate rose to six-year-high of 5 percent, household spending fell and the specter of deflation is back.

Analysts cautioned against getting too excited about the latest output data, saying that it might just show inventory levels have fallen after recent cutbacks.

The jobless rate of 5% is the highest since 2003.

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