Japan's Household Spending Decline Raises Concerns for Economic Growth

Reported about 1 year ago

Japan's household spending unexpectedly fell in May, indicating that consumption may not be a significant driver for the economy in the second quarter. The decline of 1.8% from a year ago, missing the consensus forecast of a 0.3% increase, was influenced by decreases in food, utilities, and household durable goods spending. Despite strong wage gains, the anticipated rise in spending has not materialized, posing challenges for the Bank of Japan's interest rate policies. The government's measures to alleviate living costs, such as tax rebates and utility subsidies, are seen as having limited impact.

Source: YAHOO

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