Japan's Economy Shrinks Most Since Pandemic Began as Inflation Squeezes Consumers
• Japan's economy shrank 2.9% annually in Q3, the sharpest contraction since the pandemic began • The drop was driven by weaker household spending as inflation weighs on consumers • The data complicates policy for the Bank of Japan as it considers ending negative interest rates • Separate data showed household spending fell 2.5% in October, the 8th straight monthly drop • The numbers offer little respite for Prime Minister Fumio Kishida amid low approval ratings