A slump in private consumption is weighing on the Japanese economy. September consumer spending posted its largest year-on-year decline in six years, while prolonged rain and high prices strengthened the trend toward frugality.
A slump in private consumption is weighing on the Japanese economy, with September consumer spending falling sharply from a year earlier. Adverse weather and high prices have been cited as factors that directly affected consumers' inclination to save.
The government is awaiting the release of the preliminary GDP estimate for the July-September quarter to assess the effects of its proposed consumption tax cut with experts.