Another side to that picture?
Households In Japan Spend More
(Bloomberg News)
TOKYO - Household spending in Japan rose in January from December,
the Economic Planning Agency said Thursday, the fifth increase in six
months and a sign that government action to stimulate the economy may be succeeding.
The household spending index rose a seasonally adjusted 2.2 percent to
98.1 points, the Management and Coordination Agency said. From January
a year earlier, overall household spending rose 1.4 percent.
Economists say getting Japanese consumers to spend again holds the key to pulling the world's second-largest economy out of its worst recession in more than 50 years. In an effort to turn the economy around, the government has unveiled 40 trillion yen ($328 billion) in stimulus measures over the past year.
Money from a 16 trillion yen package unveiled last April began to flow into the economy in September. In November, the government announced
another package, providing a record 24 trillion yen in public-works
spending, tax rebates and job-creation subsidies.
Several indicators show that action is beginning to bear fruit. In December and January, manufacturers increased production as rising public works projects gave a boost to the construction industry. That led to an increase in overtime hours, fueling the increase in household spending. |
