Japan’s Exports Fall at Slowest Pace in 14 Months

http://www.bloomberg.com/apps/news?pid=20601087&sid=aceEbWoru62s&pos=2

Export Revival

The export revival has yet to spread to the domestic economy. Large companies plan to cut spending 13.8 percent in the year ending March 2010, the second-worst projection on record, the Bank of Japan’s Tankan survey showed last week. Economic growth slowed to an annualized 1.3 percent in the third quarter, about half the pace of the previous three months.

Household confidence fell in November for the first time this year and wages have slumped for 17 months.

“Even though exports are strong, domestic demand is weaker than people expected earlier this year as employment has worsened rapidly,” said Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo. “That signals the recovery in external demand and the stimulus effects won’t be enough to sustain growth.”