The outlook worsened, amid the strengthening yen, cooling global demand and the effects of the floods in Thailand. Accordingly, indicators released over the last month mostly point to the downside. Business confidence deteriorated further in the third quarter and machinery orders plunged for the second month in a row in October. Moreover, in November, the trade deficit continued to widen and consumer confidence dropped for the first time since April. Meanwhile, the government is drafting a fourth extra budget aimed at shoring up the faltering economic recovery.
