The Magazine for Asian Investors
The Japanese government reported that household spending in Japan rose in June for the first time in four months as demand for tourism services increased, indicating a broader economic recovery.
Household spending rose 3.5% year-on-year in June, the first year-on-year increase since January. Japanese households increased their spending on overnight stays, package tours and outdoor activities
According to the data, this spending was higher than the projected average of 1.5%, indicating that people are spending less on vegetables and fish but more on transportation.
In addition, household spending rose by a seasonally adjusted 1.5% in June compared to May.
The 0.2% increase, which was higher than expected, was a recovery after a 1.9% decline in May.
It is true that household spending rose more strongly than expected. However, this did not allay concerns that Japan’s economic recovery will be slower than that of other major economies such as the United States.
Some analysts are already warning that Japan’s economic recovery may slow in the current quarter, following growth in the second quarter that was driven by a modest recovery in consumer demand after the government lifted measures to curb the spread of COVID-19.