Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Will Lower Land Prices Spook Japanese Consumers?


Economic Trends

WILL LOWER LAND PRICES SPOOK JAPANESE CONSUMERS?

Japan's economy actually contracted a bit last quarter, but most observers are still betting that the nation will avoid a true recession. Economists at Shearson Lehman Brothers Inc. are not so sure, however. They fear that falling land prices are exerting a powerful effect on the spending proclivities of Japanese consumers.

Land is by far the largest component of Japanese households' net worth, accounting for more than half of their wealth, compared with only 20% of assets held in the form of cash and deposits and 6% in direct stock-market holdings. With land prices down 10% in 1991 and another 10% so far this year, Japanese consumers appear to be retrenching. And if consumption actually falls as households try to rebuild lost wealth, warns Shearson Lehman, the risks of a real recession will grow.GENE KORETZ


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus