(Source: Reuters | November 6, 2018)
According to government data, Japan’s household spending declined to 1.6% in September from a year earlier, falling short of economists’ expectations and suggesting a slow recovery after an earthquake and typhoons hit consumption.
The decline in September was the exact opposite of the 1.6% annual increase forecast by economists, and follows a 2.8% yearly gain in August.
Third-quarter consumer spending was negativelt affected by the northern island of Hokkaido temporarily lost power in early September due to an earthquake and typhoons flooded important infrastructure in western Japan, economists say.
Spending fell in September due to a 1.8% annual decline in outlays on food and a 3% annual decline in spending on leisure activities such as travel and golf, while spending on clothes rose an annual 0.9%.
Japan’s economy grew an annualized 3% in the second quarter, supported by the big jump in capital expenditure, but a slowdown in exports expected by some economists and weak consumer spending may weigh on third-quarter GDP.
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