Japan’s Household Spending Falls, Clouding Growth Outlook
- Outlays for food, utilities, household durable goods decline
- Spending on autos, education among components on the rise
Consumer inflation has stayed at or above the BOJ’s 2% target for more than two years, weighing on consumer sentiment.
Photographer: Takaaki Iwabu/BloombergThis article is for subscribers only.
Japan’s household spending unexpectedly fell in May, raising the likelihood that consumption won’t be a key driver for the economy in the second quarter, and complicating the prospects for the central bank’s next interest rate hike.
Real outlays, adjusted for inflation, declined 1.8% from a year ago, the ministry of internal affairs reported Friday. The result missed the consensus forecast of a 0.3% increase. Spending slipped 0.3% from April.