Japan Consumer Spending:

 Article Source:

:https://mainichi.jp/english/articles/20221119/p2a/00m/0bu/016000c

Ideas:

Its no surprise that inflation is hitting 80 percent of households in Japan and that they are cutting back on spending as needed.

The area that most families probably struggle with is food prices and the survey results are no surprise.

As household budgets become more compromised its not a surprise again that 79 percent are economizing,

With 42.6 percent they are reducing travel and leisure, it doesn’t bode well for the domestic travel industry.

Even a 32.9 percent decrease on clothing for women and a 28.3 percent decrease in cosmetics and beauty-related products, again consumer spending is going to drag down economic growth in the future.

Even after-school lessons are being cut as families just can’t afford the extra costs when they budgets are severely compromised.

This might cause a significant variance between the rich, who probably don’t feel a lot of stress with their budgets and average families who probably use the after-school lessons needed to get into the better schools.

The Bank of Japan has got to realize what inflation has done to the Japanese economy and need to make changes to level the variance between the yen and and they US dollar.

As utility bills continue to increase that could mean less extra or disposable income that can be used in the economy.

The article doesn’t mention those above 65 that might be in fixed or limited income, which are probably even more compromised related to their budgets and their food costs which probably make up a larger part of their budgets

Only time will tell how all of this is going to play out for the Japanese economy.

Have a nice day and be safe!