07/05/18: Japan’s Ministry of Internal Affairs and Communications reported today that overall household spending in Japan declined for the third consecutive month during May, the latest month for which data are available, falling at the biggest year-over-year rate (3.9%) since August 2016.

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With the readings on several other economic indicators for Japan worsening over the past couple of months, our research suggests that Japan’s economy continued to weaken during the second quarter of this year after contracting at a 0.6% quarterly annualized rate for the three months ended March 31, 2018.

On a positive note, some key leading economic indicators for Japan suggest that the country’s economy will improve over the next few months.