Japanese Household Spending Falls for Ninth Straight Month
Data released in Japan on October 9 showed that household spending declined 3.1% year-on-year in August. Markets had expected a 3.6% decline.
Seasonally adjusted monthly spending rose only 0.1%, compared with expectations for a 0.5% increase. The annual decline therefore extended to a ninth consecutive month.
Although the annual reading was better than expected, continued weakness in consumption raises questions about Japan's domestic demand outlook. The data will be important for the Bank of Japan as it considers possible interest rate increases in the coming months.
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