Abe Considering Another Postponement of Tax Hike on Poor Consumer Spending

posted by Richard Katz on March 03, 2016

Found in Japan, categorized in Macro

Tags: Richard Katz TOE Abe tax hike

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With consumer spending continuing to disappoint and an election coming up (perhaps a “double election” of both the Upper and Lower House), we’d not be shocked if Abe decided on another postponement.


Key points: - Kantei considering another postponement of the consumption tax hike - This is partly due to upcoming election and partly due to ongoing bad news on consumer spending - Consumer spending in January was down a whopping 4% from a year ago - Spending is now even lower than it was in mid-2014 after the consumption tax was raised from 5% to 8% - Auto sales are down 20% from a year ago - Some economists see GDP falling again in January-March, after having fallen at a 1.4% annual rate in October-December

About Richard Katz

Richard Katz

Richard Katz is Editor of The Oriental Economist Report, a monthly newsletter on Japan, as well as the semi-weekly TOE Alert e-mail service on Japan, and is also a special correspondent at Weekly Toyo Keizai, a leading Japanese business weekly.

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