The Japanese economy deflated and become doubts about his recovery

The industrial production and domestic consumption in Japan fell in May while unemployment rose, suggesting that the economic recovery of the archipelago may slow due to the problems of global demand.

Industrial production fell 0.1% in May over April, said Tuesday the Japanese Ministry of Economy, Trade and Industry, after two months of rises. However, annual measure, this indicator remains solid increase of 20.2%.
Indeed, Japan's economy was revived in the second half of 2009 after one year recession, the longest since World War II.
"These figures clearly indicate that the recovery is slowing down," said economist Hiroshi Watanabe, Daiwa Institute of Education.

However, Watanabe said the economy will fall into a "new recession," noting that the Japanese government expected increases in industrial production in June (+0.4%) and July (+1%).
"But the pace of recovery will be slow to make a temporary pause, as exports were reduced by the global economic slowdown due to factors like China's decision to tighten monetary policy and lower deficits in Europe "he said.

The second largest economy saw strong growth of 5% annual pace in the first quarter thanks to strong exports to Asia and emerging countries, especially China.

But the Japanese domestic demand fails to take off, as evidenced by the further decline of 0.7% in the consumption of households recorded in May last year and announced Tuesday by the Ministry of Internal Affairs.

Purchases of appliances and furniture, one of the main drivers of consumption for months thanks to government incentives, deflated, falling 9.3% in annual pace.

Another concern is the rise in unemployment, which rose to 5.2% in May versus 5.1% in April, with 3.47 million job seekers.

According to the Ministry of Health, Labour and Social Affairs, this figure is not so bad, because in May there were 50 vacancies for every 100 claims against 48 in April.

In order to Yoshiki Shinke, an economist at the research institute, Dai-ichi Life, labor market conditions "have not materially altered."

Some analysts have noted that some people discouraged during the recession have returned to find work, which could explain the increase in official unemployment rate.