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Overall, Japan is Impressive

Concerning the housing starts (5.8%), the report is better than expected, showing an increase faster than expected but lower than 7.3% seen in March. Contrariwise, the yearly household spending rose a real 1.5%, lower than expected but marked the fourth month on positive figures. If the real estate chapter is telling the investors that the economy is responding to the monetary stimulus, the reports about CPI may not be so convincing in achieving 2% inflation too soon. The National Core CPI is still negative on -0.4% and the Tokyo Core CPI is positively released at 0.1% (the explanation consists of the 14.5% month on month increasing in the price of televisions, factor that drove up this indicator).

Speaking about the unemployment rate, came in line with the expectations of 4.1%, better than the last year on this time when was reported at 4.6% rate of unemployment. The monthly industrial production reported at 1.7% was the sign showing that the economy is moving in the right direction. The Manufacturing PMI came at the value of 51.5 almost reaching the last high of 51.9 in August 2011. This data is supported by an acceleration in the rate of production growth.

Overall, Japan is Impressive by