The government's second preliminary report revised down growth domestic product figures for the July-September period simply because inventory investment increased less than expected. It clearly shows business is picking up. In fact, consumer spending has been expanding and capital investment is anticipated to increase. The Japanese economy will keep growing steadily without doubt. The government launched a stimulus package, "Economic Measures for Realization of Positive Cycles" last week to avoid business downside risk triggered by consumption tax rate raise scheduled next spring. There is no major negative factor to shade the bright future of Japan's economy.
Energy import expansion has been a main reason of the recent trade deficit increase. It is necessary to reactivate nuclear power plants as soon as the safety is confirmed.
The jobs situation has improved in the United States. The unemployment rate has dropped to 7.0%. It has made financial markets nervous about the Federal Reserve's possible action to reduce its monetary stimulus. Housing starts and car sales remains strong. Personal consumption will help the U.S. economy gather steam. It will have a positive impact on the Japanese economy.