Sluggish consumption harmful, Japan says
The Japanese government kept its assessment of the economy unchanged, saying sluggish consumption was hurting the country’s economic recovery, as the central bank’s governor remained cautious about an early interest rate hike.
Rising production and capital investment propelled the world’s second-largest economy to a record 59th consecutive month of recovery -- nearly five years -- since January 2002, according to a Cabinet Office report.
But the report, which looks at a variety of economic factors besides gross domestic product, warned of weakness in consumer spending, saying sluggish growth in wages was keeping spending flat.
Domestic demand, which accounts for more than half the economy, undercut growth in the July-September quarter, forcing the government to downgrade its economic outlook this month.
Last month, the Cabinet Office downgraded its overall assessment of the economy for the first time in almost two years.
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