Japan household spending hits peak in 18 months

Japan’s household spending posted its sharpest level of increase in 18 months, official data showed on Tuesday. The March reading came after consumer demand staged an impressive rebound from the coronavirus crisis last year.

Household spending recorded a 6.2% year-on-year jump in March. The expansion followed a 6.6% decline in February as it surpassed a 1.5% hike expected in a Reuters survey. More so, the reading came as the fastest pace of acceleration since September 2019.

The jump in spending was owed mainly to a rebound from last year’s contraction, a government official said. In addition to this, demand for travel services grew impressively even if it remained at low levels. With the government’s fiscal and monetary stimulus, the economy is expected to gain tighter momentum as it emerges from the COVID-19 slump.