Japanese refrain from spending after the consumption tax hike

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The Bank of Japan has conducted a survey of more than 2,000 people asking how they felt the economic conditions and their spending. 

 According to the survey result released on January 9, about 33% of respondents said they had refrained from spending after the consumption tax hike in October last year, and the counter reaction brought by the last - minute demand and the inclination to savings were seen after the tax hike to some extent. 

 Asked in multiple answers about what kind of products and services they reduced spending on, the most respondents answered “eating out” at 57.8%, followed by "clothing and footwear" at 51.5%, and "daily goods" such as detergents and general merchandises at 41.6%. 

 When asked how long the negative effect will continue, 74% of respondents said that it will continue after the spring. 

 The impact of fading last - minute demand and the tendency to save money will be expected to continue for the time being.

  Although the government implements measures to stimulate economy such as reward programs for cashless payments and a reduced tax rate for food, it is pointed out that the government should pay close attention to the influence of tax increases on consumption and economy.

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