Just caught this as I was shutting down the PC.
A Reuters survey of Japanese firms shows that early results from sales after the tax rise are steady on a year on year basis and nearly 50% have passed on the tax hike to customers. Over 25% have even seen sales higher since the tax.
It’s one thing I didn’t factor in with the tax, i.e whether companies pass it on or wear some or all of it. It can be seen two ways. Either companies are worried enough about the rise affecting sales not to pass it on or they are doing well enough to wear losing 3% on their selling prices.
Going by the responses from the survey there’s a strong suggestion it’s the latter. If so that’s good news for Abenomics and the Japanese economy.
I’m definitely going now and I’d like to wish you a happy and relaxing long weekend once again, and thank you for all the fantastic responses and other advice on my “Why do you trade?” post. What a great bunch you all are.
