Japan's factory output is being led by increased exports

Japan's factory output rose for the ninth straight month in November, up 2.6% from October, as the manufacturing sector continued to recover.

The rise, which was higher than expected, came in response to growing overseas demand for Japanese goods.

Japan's exports to the rest of Asia totalled 2.7 trillion yen ($30bn) in November, 4.7% up on October. It was the first rise in 14 months.

But domestic demand remained weak, as consumer spending fell again.

Retail sales were 1% lower in November than a year earlier, the 15th monthly fall in a row, as consumers continued to cut spending because of job market fears.

Japan returned to economic growth in the second quarter of 2009 after spending a year in recession, but falling salaries have prompted renewed worries about deflation.

Average wages declined by 2.8% in November from a year earlier, marking their 18th consecutive monthly fall.

"

=======================

History teaches us good lessons if we are willing to look back and pick up the nuggets.  The best of lessons come from observing other nations, other people.... their successes (preferably) and their failures... so we know what works/does not. Japan's lessons are worth observing closely.

Japan went into deep recession and did major bailouts and TARP like spending to find that it only calcifies corruption that is already prevalent in the system. THEN, they focused on economic recovery from the trenches.  Now, since mid this year, they are seeing improvements and that is coming from manufacturing.  US would do well to invest in manufacturing even if it is to create enclaves that are sheltered for the time being with definite sunset clause on protections and subsidies.  It will take some serious strategic thinking to decide where the country wants to head - which skillsets are available/in short supply and how to leverage that to strengthen the economy.