Indicators
Japan’s Household Spending Drops for First Time in Three Months
Consumer spending, adjusted for inflation, stayed below pre-pandemic levels last year in Japan’s GDP data.
Photographer: Soichiro Koriyama/BloombergThis article is for subscribers only.
Japan’s households cut back on spending as inflation remained elevated, in a sign of vulnerability in a key pocket of the economy before sweeping US tariffs hit the country.
Household outlays adjusted for inflation declined 0.5% in February from a year earlier, the ministry of internal affairs reported Friday. The result compared with the median economist estimate of a 0.8% decline. The drop was led by falling outlays on clothes and footwear, housing and food.