Japan’s Household Spending and Unemployment Fall in July
- Joblessness at lowest since 1995, spending down for 5th month
- Retail sales drop 0.2 from year earlier, less than forecast
Breaking Down Japan's Employment and Retail Sales Reports
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Japan’s household spending fell for a fifth straight month and retail sales also dropped, underscoring the weakness in domestic demand. The jobless rate was the lowest since 1995.
Japan’s economy is struggling to gain momentum, evidenced by slower expansion in gross domestic product than economists forecast in the second quarter. Even as the job market remains tight, the yen’s gains since the start of 2016 are hurting exports, making businesses more reluctant to invest. Meanwhile, consumers are wary of spending because wages are barely rising. This is putting pressure on the Bank of Japan to consider more monetary stimulus at its meeting on Sept. 20-21.