Japan GDP Fell 6.8% in Q2 Following New Consumer Tax Hike (FXY)

Japan's gross domestic product (GDP) fell 6.8 percent in Q214, more than offsetting a growth reading of 6.1 percent recorded in the prior quarter and putting into question whether more public stimulus should be implemented.

According to numbers from Japan's Cabinet Office, it was the largest pullback since the March 2011 earthquake and tsunami.

Market watchers note that the drop comes following an hike in the national sales tax, which rose from 5 percent up to 8 percent on April 11th.

While the trend in consumer spending showed acceleration in May and June, some see higher inventory levels as a warning sign.

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