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We still need to see a higher rate of increase in pay to be assured of growth prospects after the sales-tax hike. The worlds third-biggest economy is gathering momentum as companies and consumers rush to make purchases before the sales tax rises to 8 percent in April from 5 percent. Production rose the most in January since June 2011, while retail sales posted the biggest increase since April 2012. Once the rush is past, the economy is forecast to shrink an annualized 3.9 percent in the three months starting April, slumping after a projected fifth straight quarter of growth, according to a Bloomberg survey. Virtuous Cycle Japanese stocks rose, boosted by a decline in the yen. The Topix index was up 0.4 percent at 12:42 http://sherlyonlineplace.wallinside.com p.m. in Tokyo, while the yen was down 0.2 percent at 101.64 per dollar. Wage gains remain below the rate of inflation, which is cutting into consumers real spending power, showing Abe has work to do for his Abenomics reflation effort to succeed.
06 Mar 2014