Japanese consumers still not spending enough

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Consumer spending in Japan unexpectedly fell in July, threatening the country’s gradual recovery.

The development puts more pressure on policymakers to offer more fiscal and monetary support to stimulate the economy.

Premier Shinzo Abe’s policies – sometimes known as abenomics – have so far failed to adequately boost wages, exports and prices and analysts doubt whether any further monetary easing or fiscal spending will do any more to reflate the economy.

Spending on large items such as cars
remained particularly weak, a sign consumers are still reluctant to spend.