As I have mentioned earlier, the US economic slowdown has already begun to exert a negative influence on Japan’s economy through a variety of channels including an indirect impact involving economic slowdowns in East Asian countries that are closely linked to the US economy. In Japan, production growth slowed under the influence of decreases in exports.
If this leads to declines in corporate profits and reductions in business spending, the momentum for economic recovery stemming from the business sector will be put at a greater risk than before. Therefore, we all need to examine carefully the ongoing production, profits, and investment plans for some time.