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Japan's household spending slumps big time

Christian Fernsby ▼ | July 7, 2020
Japan’s household spending fell fastest on record in May, as consumers heeded authorities’ calls to stay home to contain the coronavirus pandemic, pushing the world’s third-largest economy deeper into decline.
Japan old street
Household   Japan old street
Wages and a gauge of economic activity also tanked in the month, keeping pressure on policymakers to revive business and consumer confidence.

Topics: Japan

Household spending slumped 16.2% in May from a year earlier, official data showed on Tuesday, falling at the quickest pace since comparable data became available in 2001.

The drop, which was larger than a median market forecast for a 12.2% fall, extended an 11.1% decline in April.

Separate data on Tuesday showed May inflation-adjusted real wages dropped at the fastest pace since June 2015, adding to signs of stress in the labour market.


 

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