Japan’s economic growth may have slowed in July-September as consumer spending and exports moderated, but growth will quickly bounce back as shoppers spend up before a sales tax hike next year, a Reuters survey found.
Capital expenditure was also expected to have slowed in the July-September period, the survey found. This cooling, however, could be temporary as service firms plan to ramp up investment to meet improving domestic demand.
A tighter labor market and signs of rising wages should also support consumer spending in coming quarters, which bodes well for Prime Minister Shinzo Abe’s push to foster self-sustaining growth and end 15 years of mild deflation.
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