As poor economic data rattles faith in Abenomics following the April consumption tax hike, one analyst told CNBC that uncertainty over the outlook for Japan's economy will linger for some time.
"With the consumption tax, we're not done with this… as the government is poised to take it from 8 to 10 percent next October," Paul Sheard, chief global economist at Standard & Poor's Ratings Services told CNBC Asia's "Squawk Box."
"So if they go ahead with that we're still going to be - for the next year to year and a half - in this no man's land of not knowing whether what [Bank of Japan Governor Haruhiko] Kuroda is doing is successful," he added.
Japanese household spending fell 5.9 percent on year in July, worse than expectations for a 3 percent decline, data released Friday showed. Industrial output rose 0.2 percent on month, below expectations for a 1.0 percent rise.
The data add to a series of sub-par economic readings as the effects of the government's sales tax to 8 percent from 5 percent in April drag the economy, fueling uncertainty over the effectiveness of Abenomics – Prime Minister Shinzo Abe's plan to boost Japan's long-moribund economy.