Japan’s household spending unexpectedly fell in May, raising the likelihood that consumption won’t be a key driver for the economy in the second quarter, and complicating the prospects for the central bank’s next interest rate hike.
Real outlays, adjusted for inflation, declined 1.8% from a year ago, the internal affairs ministry reported Friday. The result missed the consensus forecast of a 0.3% increase. Spending slipped 0.3% from April.
Components that drove the decline included outlays for food, which fell 3.1% year on year, utilities and household durable goods. Spending on education and cars increased.
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.