HONG KONG ECONOMIC TIMES NEWS SERVICE, Sept 9 - Data released by Japan's Ministry of Internal Affairs and Communications on Friday showed that despite continued wage growth, Japanese household consumption has declined for the ninth consecutive month, as persistent inflation erodes purchasing power and consumer sentiment remains cautious.
Real household spending in August, adjusted for inflation, fell 3.1% compared to the same period last year, less than the 3.6% decline economists had expected; on a seasonally adjusted basis, it decreased 0.1% from the previous quarter.
Spending declines in education and entertainment, food, home repairs, rent, and utilities dragged down the overall consumption index; the only category showing growth was transportation and communication, with a slight increase in automobile-related spending.
Data released on Friday indicated that inflation and domestic demand are not rising in tandem. An overly rapid and aggressive pace of rate hikes could weigh on the economy. (yc)
Real household spending in August, adjusted for inflation, fell 3.1% compared to the same period last year, less than the 3.6% decline economists had expected; on a seasonally adjusted basis, it decreased 0.1% from the previous quarter.
Spending declines in education and entertainment, food, home repairs, rent, and utilities dragged down the overall consumption index; the only category showing growth was transportation and communication, with a slight increase in automobile-related spending.
Data released on Friday indicated that inflation and domestic demand are not rising in tandem. An overly rapid and aggressive pace of rate hikes could weigh on the economy. (yc)
