It doesn’t look good for the Japanese economy, according to recent economic data published this morning.  For the month, both output and retail sales declined, indicating that governmental stimulus packages aren’t alleviating the pressure from an appreciating yen and domestic fears of a global slowdown.

According to the trade ministry, industrial production declined in the month of November, plummeting by 2.6% in the month over month comparison.  This is compared to the 2.2% increase witnessed in October.  Unfortunately, the monthly dip drags the annualized figure to a -4% – a sign of the times as exports volum has remained tepid at best and capital spending initiatives are drying up.  Third quarter spending fell by almost 10% as business activity seemingly remained at a standstill.

Consumer spending figures weren’t positive either.

Retail sales volume, according to the Ministry of Economy, Trade and Industry, fell by 2.3% on an annualized basis in the month of November.  This is the first year on year decline for the report in almost 2 months and lower than the anticipated unchanged estimate.  October’s results were far better, with sales climbing by 1.9% year on year.

Unfortunately, both reports are nothing but a sign that the world’s second largest economy remains under severe pressure as the domestic currency continues to appreciate – crimping manufacturing activity and export demand.  This has forced the government to take recent actions in expanding yen currency offerings to trade partners in recent days <read alert here>.

Nonetheless, the Japanese yen continues to remain at the lower end of its daily range – trading at 77.80.