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Japan's long growth run faces turning point as wages, spending fall

A slowdown in consumption would be an additional headache for Japanese policymakers

Reuters  |  TOKYO 

Japan's longest run of economic expansion since the 1980s asset bubble may be entering a turning point, with data out on Friday suggesting consumption will fail to drive growth if trade frictions undermine exports. Household spending shrank 0.9 percent in February from a year earlier, the biggest drop since a 1.4 percent fall in April last year, while inflation-adjusted real wages fell for a third straight month in February, undercutting consumer buying power. A slowdown in consumption would be an additional headache for Japanese policymakers, who fret the yen's recent ...

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First Published: Fri, April 06 2018. 18:23 IST
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