Household Spending: Growth and Capital Expenditure

household spending: The economy grew an annualized 11.7% in the October-December period, weaker than the preliminary reading of 12.7% annualized growth to mark the second straight quarter of growth, Cabinet Office data showed Tuesday, according to The Japan Times. The reading, which was weaker than economists' median forecast for a 12.8% gain, translates into a real quarter-on-quarter expansion of 2.8% from October to December, versus a preliminary 3.0% gain. The slower growth was mainly due to weaker capital expenditure and public spending, which both expanded less than previously thought in the fourth quarter, even as exports remained solid. ; Separate data showed household spending was hit by a bigger annual drop in January than in the prior month, a sign the COVID-19 pandemic was keeping consumers cautious about shopping. Capital spending grew 4.3% from the previous quarter, lower than a preliminary 4.5% rise, but outpacing the median forecast for a 4.1% increase. Although vaccination started in Japan, it will take time to yield its impact, so the economy is forecast to go though some ups and downs, said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute. Private inventories, including raw materials and manufactured products, subtracted 0.6 percentage point from revised growth domestic product growth GDP worse than a negative preliminary contribution of 0.4 percentage point. (news.financializer.com). As reported in the news.