Consumer revival underway

The recovery in Japan’s economy since early last year has mostly been driven by a surge in exports, but Japanese consumers also seem to be joining the party. Consumer spending is on track for another strong increase this quarter, with spending on services and goods all hitting fresh highs recently. Employment continues to expand at a rapid pace and, even though wage gains remain subdued, the absence of noticeable price pressures suggests that the recovery in private consumption has further to run.