Japan: Manufacturers boost production in anticipation of consumer tax increase

Japan’s manufacturers have boosted production in anticipation of a consumer binge ahead of the April 1 consumption tax hike, The Japan Times reported on February 9.

Since companies are already seeing last-minute demand before the tax climb to 8 percent from 5 percent, they are taking all possible measures to raise output.

Still, the growth in demand is not boosting regular employment or private-sector investment because manufacturers are cautious about the risk of substantially increasing inventories that could quickly become dated right after the tax hike.

Kirin Brewery Co. plans to boost production of its mainstay Ichiban Shibori beer by 20 percent in March compared with the previous year.

12 February, 2014