Japan's household spending rose for a ninth straight month in August, data showed on Tuesday, offering some relief for the export-dependent economy as it confronts softer global demand and a protracted US-China trade war.[TOKYO] Japan's household spending rose for a ninth straight month in August, data showed on Tuesday, offering some relief for the export-dependent economy as it confronts softer global demand and a protracted US-China trade war.
The mixed batch of data will keep policymakers under pressure to deploy more fiscal and monetary stimulus measures to shield the economy from a recession, analysts say. The slowdown in China and the trade war between the world's two largest economies have hurt business sentiment in Japan, which is also grappling with softer global demand for its exports. The impact from a higher sales tax could further weigh on the economy.
While the government has taken steps to ease the burden on consumers by offering vouchers and tax breaks, there are fears the higher tax could dent spending and tip the economy into recession.Separate data showed real wages adjusted for inflation fell for an eighth straight month in August, which could hurt consumption following the sales tax hike.