Cash Piles Up in Japan While Spending and Investment Wane
- Companies and households amass cash at record levels
- Adds to concerns that Japan's economic recovery faltering
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Japanese companies and households piled up cash at record levels in the last quarter of 2015, offering little support for an economy that some analysts forecast is at risk of contracting again.
Corporate assets in cash and deposits reached a record high of 246 trillion yen ($2.2 trillion), rising for the 29th consecutive quarter, according to Flow of Funds data released by the Bank of Japan on Friday. Households’ assets rose to 902 trillion yen, the highest level on record, marking nine straight years of growth.