The preliminary estimate of Q2 GDP only added to the uncertainty about the planned consumption tax hikes. The latest monthly data have mostly been favourable, notably the buoyancy of business confidence and signs that investment may already have started to recover. The weak yen, while not directly improving the competitiveness of exports, has at least boosted corporate profitability. However, consumer spending is losing momentum. Many commentators are still heralding the return of inflation as a triumph for “Abenomics”, but most households are worse off as a result.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services