Economics
Japan’s Falling Spending, Real Wages Cloud Recovery Outlook
- Outlays dropped 1.4% from June amid record Covid-19 cases
- Japan needs robust spending for a strong economic recovery
Household outlays dropped 1.4% from June as spending on furniture, clothing and insurance fell.
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
Japan’s households cut back on spending in July while real wages fell again amid a surge in virus cases and a steady increase in the cost of living, suggesting the country’s recovery path is still shaky.
Household outlays dropped 1.4% from June as spending on furniture, clothing and insurance fell, the ministry of internal affairs reported Tuesday. Spending was 3.4% higher than a year ago, compared with a 4.6% gain forecast by analysts.