Posted 4/5/2024, 12:20:00 AM
Japanese Household Spending Slumps for 12th Month as Inflation Outpaces Wages
- Japan's households continued cutting spending as persistent inflation discourages discretionary outlays
- Outlays decreased 0.5% in February from a year ago, marking the 12th straight monthly decline
- Economists forecast real wages to finally turn positive in June thanks to strong wage hikes this year
- Lackluster consumer spending has dragged on Japan's economic recovery path
- Downside risks include the weak yen fueling imported inflation and looming end to utility subsidies hitting households
