Japan April household spending unexpectedly falls
TOKYO :Japanese household spending unexpectedly fell in April, as consumers tightened their purse strings in the face of higher prices.
Consumer spending fell 0.1 per cent in April from a year earlier, data from the internal affairs ministry showed on Friday. That was worse than the median market forecast for 1.4 per cent growth and March's 2.1 per cent increase.
On a seasonally adjusted, month-on-month basis, spending declined 1.8 per cent, versus an estimated 0.8 per cent fall.
Consumption and wage trends are among key factors the Bank of Japan is watching to gauge economic strength and decide how soon to raise interest rates.
Hefty pay hikes are seen as essential to counter sharp increases in the cost of living. Major Japanese firms on average agreed to more than 5 per cent pay hikes during annual spring wage talks in March.
The monthly wage data released on Thursday showed real wages fell for a fourth consecutive month, eroded by stubborn inflation that has continued to outpace pay hikes.
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