Indicators
Japan’s Household Spending Falls, Weighing on BOJ Rate Hike Path
- Outlays fall for a fourth month led by durable goods, clothing
- Real spending remains key part of virtuous economic cycle
Consumer spending has been on a downtrend for months as shoppers cope with inflation that’s been at or above the BOJ’s price target for more than 30 months.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Japan’s households cut consumption for a fourth month as inflation continues to weigh on their purchasing power, showing an economic fragility that’s likely to keep the Bank of Japan cautious about additional rate hikes.
Outlays adjusted for inflation fell 0.4% in November from a year earlier, led by household durable goods and clothing, the Ministry of Internal Affairs reported Friday. The result was better than expectations for a 0.9% drop, but the gauge has risen only twice in the past 12 months. Nominal spending rose 3% compared to the previous year.