Japan’s household spending, real wages slip further on pandemic drag
Japan’s household spending recorded eleven consecutive months of decline ended August. Meanwhile, real wages had dropped for six straight months as consumers are still anxious to return to their pre-pandemic purchasing practices.
Household spending recorded a 6.9% contraction in August from a year ago, government data showed on Friday. The figure came parallel with a median forecast predicted by markets in a Reuters survey. Moreover, a year-on-year drop in August would mark its 11th month of contraction. This would come as the longest period of decline after household spending tallied a 15-month drop ended May 2017.
While there was a monitored contraction, it has slowed after recording a 16.2% drop in May as people were restricted from leaving their home due to the pandemic.