In August 2015, growth in household spending was reported in Japan for the first time in three months. A rise in demand for workforce was the strongest for the last 23 years. Pundits believe it will ease investors’ concerns over a possible turn to recession in the country.
Official data showed that the Japanese consumer spending increased by 2.9% in comparison with the 0.2% growth logged in July. Increasing demand for food products and household goods led to such a dynamic. Previously, analysts had predicted a 0.3% rise in household spending.
Hiroaki Muto, chief economist at Tokai Tokyo Research Center Co, pointed out that such strong growth greatly favors Japan’s economy. He says that it should ease increasing pessimism in regard to the country’s prospects.
Spending of Japanese citizens on food products edged up by 0.6% this August, and demand for household goods climbed by 7.7%.
The provided data indicated that the rate of vacancies count to the number of unemployed people reached the level of 1.23 points in August.
