Now Japan's Money Supply Growth Slowing

Japan's money supply (M2) rose 2.9% in June from a year earlier. This is a slowdown from a +3.1% gain in May and below the record rise of +3.4% marked in October 2009, according to the Bank of Japan.

The 3.4% rise in October 2009 was the highest M2 growth rate under the “money stock” data formula adopted last year and was also higher than the record 3.2% rise marked in November 2002.

One month doesn't make a trend and global economic events are likely to be more influenced by monetary policy coming out of the U.S., the EU and China, but a slowdown in Japan would be a further kicker to the global downtrend.