tax hike

Abe Considering Another Postponement of Tax Hike on Poor Consumer Spending

written by Richard Katz on March 03, 2016

Key points: - Kantei considering another postponement of the consumption tax hike - This is partly due to upcoming election and partly due to ongoing bad news on consumer spending - Consumer spending in January was down a whopping 4% from a year ago - Spending is now even lower than it was in mid-2014 after the consumption tax was raised from 5% to 8% - Auto sales are down 20% from a year ago - Some economists see GDP falling again in January-March, after having fallen at a 1.4% annual rate in October-December

TOE Alert: January Figures Show Income and Consumption Continue to Lag

written by Richard Katz on March 03, 2015

Richard analyzes how the the post-tax hike decline in income and spending continued through January.

GDP Disappoints Again in 4th Quarter, Part 2

written by Richard Katz on February 18, 2015

While GDP overall disappointed, there are some bright spots which suggest that 2015 should look better than the zero growth seen in 2104.

Abe Poll Ratings Resume Plunge, Part 2

written by Richard Katz on October 28, 2014

As we detailed in yesterday’s Alert, Prime Minister Shinzo Abe’s approval ratings have resume the steady slide that was temporarily interrupted by the Cabinet reshuffle in September. We suspect that his support remains “a mile wide and an inch deep.” If there were a solid alternative, either inside the LDP or from the opposition parties, we suspect his approval ratings would be even lower.