Japan's household spending rebounds but recession looms

Japanese consumers spent more on cars, household repairs, domestic travel and education costs, boosting monthly spending by 2.9%Spending among Japanese households rebounded in August, data showed Friday, offering a glimmer of hope after a string of weak figures, but economists warned the world’s number three economy was still headed for recession. While private spending accounts for about 60 percent of Japan’s GDP, analysts have warned over a recession in the July-September quarter — after a contraction in the previous three months. The slowdown in Japan’s economy has underlined the challenges facing Prime Minister Shinzo Abe’s growth blitz, dubbed Abenomics, as speculation grows that the Bank of Japan (BoJ) would have to expand its massive asset-buying plan as early as this month.

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