Japan's household spending jumped in March ahead of a sales tax rise while the jobless rate remained at its lowest level in more than six years, official data showed Friday.
Spending rose 7.2% year-on-year as consumers snapped up purchases before the April 1 tax rise to 8% from 5%, the internal affairs ministry said.
Japan's first sales tax rise in 17 years is seen as key to taming its huge national debt but there are fears it will hit consumer spending, denting the country's economic recovery.
Purchases of big-ticket items were markedly higher, with spending on refrigerators and vacuum cleaners more than quadrupling from a year earlier and air conditioners logging a five-fold jump.
Spending on beds was six times higher and purchases of computers more than doubled.
The ministry said in a separate survey that the nation's unemployment rate was 3.6% in March, matching the rate in February, which was the best reading since July 2007.
© (c) 2014 AFP
10 Comments
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smithinjapan
Why is this news, save to try and justify the tax hike as though the economy were getting better? How is consumer spending AFTER the tax hike?
NathalieB
No duh.
plasticmonkey
Except that the govt is not reducing the debt. It's spending the money on pork.
Disillusioned
Yep! And it will drop by 15% this month. Abenomics = Fail!
John Galt
" Yep! And it will drop by 15% this month. Abenomics = Fail!"
Almost. Department stores and others reported an average 20% drop after the tax-jacking.
Yubaru
Which is pure BS because Japan only calculates those who are actively looking for work and not the one's who are either underemployed or have given up looking for work.
Shinjuku No Yaju
According to initial data, the April decline in spending is large, but less than expectations. The 5 large department store companies surveyed are averaging declines of 20% in April, with sales improving each week, and according to the Nikkei, 80% of retailers expect sales volumes to return to normal levels by June.
ryuusei
@Yubaru
Doesn't matter, it's a relative number so it'll have some sway either way.
Louis Tan
See it dive to almost zero in the following months.
kurisupisu
I am in the market for a new laptop and have just been offered a discount as sales are down.....
Abe's inflation is hurting Jspan!