Alarm on Japan consumer spending

TOKYO: Do not believe in official statistics, Japanese retailers seem to be saying, as they cut earnings forecasts and warn of lacklustre consumer spending, a key growth engine for Japan at a time when exports and factory output are stalling.

If you go by the larger-than-expected 2.9% gain in household spending in August – the first year-on-year rise in three months – then consumption looks like it is finally alive and well again, after a sales tax hike last year stifled the economy.