Business News Asia
According to the Japanese government, household spending in Japan increased in August compared with a year earlier. The economy continues to recover from the effects of the Covid 19 control measures. However, higher inflation could overshadow the upward trend in household spending in the future.
Household spending in Japan rose 5.1% in August from a year earlier, following a 3.4% increase in July.
Compared with the previous month, household spending in Japan fell by 1.7% in August, a stronger decline than in July (-1.4%).
Consumer spending is expected to slow as inflation continues to rise and the yen fell to its lowest level in 24 years.
Japanese Prime Minister Fumio Kishida has pledged to introduce a new round of stimulus measures by the end of October. These could include programs to subsidize utility spending and fuel. This part will be supported by tax expenditures of at least $100 billion.
Meanwhile, the Japanese government plans to relax border controls starting Monday to take advantage of the yen’s depreciation as a factor attracting foreign tourists. This has given hope to the affected service sector.