Using Credit Card Spending to Fix Japan's Dodgy Consumption Data

Original article here: https://www.bloomberg.com/news/articles/2017-06-22/using-credit-card-spending-to-fix-japan-s-dodgy-consumption-data  

Private consumption is 56 percent of Japan’s GDP, so understanding where people are spending and what they’re buying is essential to have a clear picture of what’s going on in the world’s third-biggest economy. That’s true not just for the government, but also for businesses and people.

But the government data on spending by households has long been seen as suspect, with a preponderance of older people in the survey, and under-reporting of online shopping at places like Amazon.com Inc. or Rakuten Inc.

 To fill that gap, a venture firm has started using credit card transaction data to show consumption trends. Nowcast Inc., a financial-technology venture formed in 2015 out of the University of Tokyo, started releasing new consumption indicators created with JCB Co., a Japanese credit card issuer.

Read more... click here.

 

Ruiz Asri