Japan's service-sector sentiment worsened and bankruptcy cases rose in October, data showed Monday, casting doubt on the central bank's view the country is on track to meet its 2% inflation target driven by robust domestic demand.
The findings align with concerns voiced by some Bank of Japan board members at last month's policy meeting that intensifying labor shortages could constrain growth, rather than lead to higher wages.
"There's a risk Japan's economic growth will slow if labor supply constraints force firms to shrink operations by withdrawing from low-profit businesses," one member was quoted as saying in a summary of opinions released Monday.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.