Japan – Sep Household Spending
08/11/2019 09:54 am MYT
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On a month-on-month basis, both nominal and real monthly expenditures for two-or-more-person households in Sep rose by 5.5%. On a year-on-year basis, nominal and real household spending jumped by 9.8% and 9.5% respectively. Meanwhile, year-on-year nominal and real worker households’ spending respectively also jumped by 8.0% and 7.7% – see figure 1. The average propensity to consume for workers’ households rose from 70.2% in Aug to 75.1% in Sep. The strong performance in household spending in Sep was due to the last minute purchase before the consumption tax hike took effect. Household spending is expected to plunge in the coming months.

 

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Note from Publisher
Although India pulled out at the last minute, the 15-member Regional Comprehensive Economic Partnership (RCEP) agreement will be ready for signing next year. RCEP is a free trade agreement among the 10-member ASEAN, China, Japan, South Korea, Australia and New Zealand. It is to be the world’s largest free trade bloc. The 15 participating countries make up nearly a third of the world’s population and GDP. With the protectionist Trump administration terrorizing every country in the world with tariffs, a successful conclusion of RCEP is of utmost importance.

In addition, it is the first time that China, South Korea, and Japan are in the same free trade bloc, potentially paving the way for the illusive free trade agreement among the three East Asian economic powerhouses to be realized. i Capital has written many times about the immense potentials of a China-South Korea-Japan economic alliance. It would provide a real counter balance to the US and Europe, which have dominated the world since the first industrial revolution.

The world will definitely be more peaceful when no single super power is allowed to bulldoze its way through the rest of the world. Check and balance would promote justice, responsibility, and transparency.
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