A big Deep Dive:Japan macro &earnings momentum

A new positive earnings revision cycle has begun, primarily driven by aglobal industrial recovery, (report link below left). Whether domestic demand inJapan will become a second driver is the subject of this report. Our forecasts arelacklustre for both of the domestic demand principal components of consumptionand private investment.

Earnings momentum: Investors look to macro data for an indication of tailwindsor headwinds to company earnings. There is a trade-off between speed andreliability. The GDP reports are the most comprehensive, but are first releasedsix weeks after the end of each quarter. Monthly data series are subject tomaterial revisions. This report pulls everything together to give the investor abetter understanding of the possible, and the state of Japan’s economy today.