Japanese economy in better shape after March earthquake

Economists predicted a long economic recovery period following the March earthquake and tsunami in Japan. Current economic numbers indicate the Japanese economy is rebounding from the disaster faster than expected. Consumer spending fell 0.1% in April to June, an improvement over the 0.6% reported in the first quarter of 2011. ”The headline number is better than expected, but it’s not like this is a strong number,” said Hiroshi Miyazaki, chief economist at Shinkin Asset Management in Tokyo. ”The strengthening yen will start to weigh on exports and capital spending. We can expect positive growth in the third quarter, but the yen may damp that momentum,” said Miyazaki. Industrial production continues to rise with increases over the past three months. Manufacturers are expected to increase output in August to meet demand and make up for capacity loss following the earthquake and tsunami. (August 15, 2011)