Outlook for the Japanese economy less certain – Nomura

By FXStreet FXStreet (Bali) – The Japan Economics Team at Nomura, provides their view on the Japanese economy and domestic demand, noting that while the outlook for the economy has become less certain, domestic demand is expected to be supported by profit growth at nonmanufacturers stemming from margin improvement.

Key Quotes

“The outlook for the Japanese economy has become less certain amid deterioration in external conditions, but we expect the Japanese economy to be supported by solid domestic demand.”

“We think sustained growth in corporate profits has buttressed domestic demand. Recurring profits at nonmanufacturers (excluding financials and insurers, same hereafter) have grown sharply since early 2014 on substantial improvement in gross margins.”

“The best improvements in margins have come in the construction, electricity, gas, and waterworks, wholesale/retail, and services sectors.”
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Source:: FX Street