Skip to main content

Services spending slumps, spectre of new wave

The Bank of Japan’s broad measure of consumption released today reveals an unprecedented collapse in services spending in April. That supports our below-consensus forecast that GDP will contract by 9% q/q this quarter. With the nationwide state of emergency now over, a tentative recovery in consumer spending is underway. However, as the renewed rise in coronavirus cases in Tokyo this week underlines, a full rebound in economic activity is impossible while the threat of another wave of infections remains.

Become a member to read more

This is premium content that requires an active Capital Economics subscription to view.

Already a member?

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


Get access