Consumer spending growth in Japan ran out of steam in October following a rebound a month earlier.
Japanese retail spending was flat month-on-month in October, missing a median forecast from economists polled by Bloomberg of a 0.2 per cent rise and following a 0.8 per cent increase in September, according to according to preliminary figures from the country’s Ministry of Economy, Trade and Industry.
Capital Economics senior Japan economist Marcel Thieliant noted that despite the lack of growth in October “it wouldn’t take large increases for consumer spending to return to growth in the current quarter”.
“And given that household incomes are growing at a healthy pace and consumers are in high spirits, we are confident that consumer spending will rebound before long,” he said.
CE expects annual consumer spending in Japan to grow by 1.2 per cent in 2017 and 2018.