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Japan spending down as deflation persists

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Japanese unemployment inched up and household spending fell more sharply than expected in January, latest government data showed, but analysts said the nation's economic recovery was still on track. Figures from the internal affairs ministry showed the unemployment rate crept up to 4.6 percent in January from a revised 4.5 percent in the previous month while household spending dropped by 2.3 percent year-on-year.

The inflation-adjusted fall in spending was far bigger than the 0.8 percent dip economists had expected. However, analysts said the figures did not indicate Japan's economic recovery was in trouble because they were more than offset by upbeat production figures earlier in the week. (AFP)


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