FXStreet (Guatemala) - Analysts at RBS We increasingly hear a lot of pessimistic voices regarding personal consumption.
“GDP fell by a hefty 6.8% QoQ (annualized rate) in Apr-Jun 2014, and then bad weather this summer fueled pessimism that a demand slump from the recent tax hike might be worse than anticipated”.
“Meanwhile, Japan's authorities are assessing that consumption activity at this stage is not that bad”.
“The Cabinet Office, which presented the government's view in the Monthly Economic Report last week, retained its existing stance regarding consumption, saying that "there is weakness in some areas, but a recovery is taking place"”.
“Besides, some media sources are already reporting that the BoJ will slightly lift its view as "sales of consumption goods besides durable goods and housing are recovering at a moderate pace", rather than lower its view at this week's policy meeting”.