JAPAN

Spending Falloff Flattens Economic Growth: A slowdown in private-sector spending has dragged the economy to a near-standstill, and the gross national product may shrink this quarter, economists said. The situation has prodded the Bank of Japan to act to stimulate the economy and may require the Ministry of Finance to ease its austere fiscal policy by increasing government spending and debt to rekindle growth. “We’re not at a red light yet. But if policy isn’t eased, there is a danger of an economic downturn,” said Kunio Miyamoto, director of Sumitomo Life Research Institute. Sputtering domestic demand, slowing capital spending, falling profits and rising bankruptcies are signs that Japan is in the midst of a cyclical decline that the government’s Economic Planning Agency may eventually classify a downturn.