Japanese Production Falls Sharply

Japan’s industrial output has fallen sharply as fears of recession grow. Both consumer spending and industrial production have fallen more than 3%. Companies are having to adjust their outputs to compensate for the decline in consumption, and just like the United States, the auto industry is hit the hardest. Analysts predict that production will decrease by 8% in the next quarter. The reason for such sharp declines is because Japan relies heavily on exporting goods to foreign markets, which have also been hit by the global recession.