Japan Household Spending Falls for 9th Straight Month But Beats Forecasts in August

Japan's household spending declined 3.1% in August on a year-over-year basis, marking the ninth consecutive month of annual declines, according to government data released on October 9. The result nonetheless came in better than the consensus forecast of a 3.5%-3.6% drop and improved on the previous month's 3.6% decline, suggesting the pace of contraction may be easing.

On a month-over-month basis, spending rose just 0.1% in August, falling short of the 0.5% poll estimate and slowing from the prior month's 0.5% gain. The persistent weakness in consumer spending is notable because it is occurring against a backdrop of rising wages in Japan, underscoring that higher pay has yet to translate into stronger household consumption.