Japan¡¯s households reduced spending for a third straight month even after real wages turned positive, underscoring the fragile state of domestic demand.
Outlays by households adjusted for inflation fell 1.8% in February from a year earlier, a faster decline compared with January¡¯s 1% retreat, the internal affairs ministry reported Tuesday. Economists had expected a 0.8% drop.
The weak year-on-year data underscore the challenges for Prime Minister Sanae Takaichi as she attempts to buoy domestic demand with fiscal steps meant to soften the blow from rising prices. The premier rolled out subsidies to put a cap on utilities from the start of the year. After the Iran war spurred a rally in the oil market, she added measures to keep a lid on gasoline prices.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.