Japan's changing services sector.
GDP fell 0.6% (annualised) in the first quarter of 2018, revised figures released on June 8 show, ending eight quarters of consecutive growth. Most sectors contributed to the downturn, including household consumption, residential construction and inventory accumulation. However, the revisions pushed up the previous quarter’s growth to 1.0% from the 0.6% initial estimate.
Rising aggregate employee pay should eventually outweigh workers’ qualms over low wages and part-time work to raise household consumption.
A sharply rising real trade balance reported for April suggests a GDP impetus in the next quarter.
Disruptive winter storms may have caused weaker household spending; with better weather consumers could now return to the shops.
The market for internet and digital services will grow.
