Japan’s September household spending slumps amid bad weather - The Business Times

[TOKYO] Japanese household spending fell more than expected in September from a year earlier, government data showed on Tuesday (Nov 10), marking a 10th straight month of decline.

Consumer spending slumped 6.8 per cent year-on-year, data from the internal affairs ministry showed, more than the median market forecast for a 3.1 per cent drop and marking the biggest fall since September 2020.

On a seasonally adjusted month-on-month basis, spending declined 2.8 per cent versus a forecast 0.3 per cent uptick.

An internal affairs ministry official blamed the spending slump in September on poor weather conditions, which precluded people from going out. In Tokyo, precipitation was recorded on every single day of the month for the first time in history.

The indicator will be among factors the Bank of Japan will scrutinise as it decides whether to raise interest rates further. Many analysts expect the next BOJ rate hike as soon as December.

Japan’s real wages marked the ninth consecutive month of gains in September, data issued last week showed, with nominal wages rising at the fastest pace since January 1997. REUTERS

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