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Japan’s Household Spending Jumps Most Since 2022 as Wages Rise
- Real consumption rises by 2.7% led by jump in housing outlays
- Economists say increase may be temporary given data details
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Japan’s households boosted consumption at the fastest pace since August 2022, as strong wage gains led by bonuses helped loosen consumers’ purse strings.
Outlays adjusted for inflation gained 2.7% in December from a year earlier, the Ministry of Internal Affairs reported Friday. The result was much better than the median estimate, boosting the three-month moving average to 0.5%, and nominal spending also rose 7% from a year ago. Outlays were led by housing, which jumped 15.8%, while spending also grew for transportation and communication, and medicine.