Japan May household spending falls 1.8%, worse than expected
TOKYO, July 5 (Reuters) -Japanese household spending unexpectedly fellin May, government data showed on Friday, as higher prices continued to squeeze consumers' purchasing power, further threatening the fragile economy.
Consumer spending contracted 1.8% in May from a year earlier, far below the median market forecast for a 0.1% uptick.
On a seasonally adjusted, month-on-month basis, spending decreased0.3% versus an estimated 0.5% rise.
Sluggish private consumption is a source of concern for policymakers striving to achieve sustained economic growth underpinned by solid wages and durable inflation, which are prerequisites for normalising monetary policy.
The Japanese economy shrank more than initially reported in the January-March quarter, the government said earlier this week, in a rare, unscheduled revision to gross domestic product (GDP) data.
Economists, though, expect GDP to rebound this quarter thanks to higher wages and capital expenditures driving up domestic demand. A survey conducted by Japan's largest trade union group showed workers' monthly pay will rise 5.10% on average this fiscal year, the biggest hike in three decades.
To view the data on the website of the Ministry of Internal Affairs and Communications, click here: http://www.stat.go.jp/english/data/kakei/index.html
Reporting by Satoshi Sugiyama
Editing by Chang-Ran Kim
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
