Global Economic Analysis and News of Note
- In a reading that was much worse than anticipated, the Japanese Cabinet Office announced the nation’s economy contracted 0.8 percent in the third quarter. It was the second quarter in a row that the Japanese economy contracted, which means the Japanese economy is now officially in recession. According to The New York Times, “Worsening business confidence appeared to be behind the decline. Companies reduced investment in the quarter and drew down on their inventories rather than increase production, a sign that they may be bracing for tougher times ahead.” The Times reported the Japanese government is working on a new spending package it hopes will boost the economy.