-Caveat Lector-

Japanese Economy Remains Weak

TOKYO (AP) -- The Japanese economy remained weak today as figures showed that
new vehicle sales fell for the 25th consecutive month and household spending
also was stuck in a slump.

Sales in Japan of new cars, trucks and buses fell 11 percent in April from
the year before, to 269,388 vehicles, the Japan Automobile Dealers'
Association said today.

Hardest hit were sales of new trucks, which plunged 15.8 percent to 71,773
vehicles. Car sales dropped 9.1 percent to 196,383, the association said.

The government also said household spending was down in March for the second
straight month.

The average Japanese household spent $2,937, down 1.9 percent in real terms
from the same month a year earlier, Japan's Management and Coordination
Agency said today.

The slip followed a 3.8 percent fall in February that came after a rise in
January, when household spending rose 1.4 percent for the largest
year-on-year increase since September 1997.

The figures are the latest sign that consumer spending -- hurt by a stubborn
economic slump, rising unemployment and a wave of corporate job-cutting --
remains weak as Japanese worry about holding on to their jobs.

In late April, the government said Japan's unemployment rate in March shot up
to yet another record high of 4.8 percent, as corporate restructuring efforts
force more people out of work.

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