Japan’s June household spending rises but slower than expected

[TOKYO] Japanese household spending in June rose 1.3 per cent from a year earlier, internal affairs ministry data showed on Friday, short of the median market forecast for a 2.6 per cent rise.

On a seasonally adjusted, month-on-month basis, spending decreased 5.2 per cent, versus an estimated 3 per cent fall.

Consumption and wage trends are among key factors the Bank of Japan is monitoring to determine the timing of the next rate hike.

Japan’s real wages fell in June for a sixth consecutive month as inflation continued to outpace pay growth, data released on Wednesday showed, raising concerns about consumption-led recovery in the world’s fourth-largest economy.

The government on Thursday cut its growth forecast for this fiscal year as US tariffs slow capital expenditure and persistent inflation weighs on private consumption. REUTERS