Japan Consumer Spending Falls Sharply for Eighth Straight Month

Japan's household spending fell 3.6% in July, marking an eighth consecutive month of decline. The drop was significantly sharper than economists had anticipated, with a median market forecast of a 1.6% decline.

The persistent weakness in consumer spending reflects a combination of factors, including sluggish wage growth and sticky inflation. As a result, households have been cautious about making discretionary purchases.

The latest figures are likely to complicate the Bank of Japan's timeline for raising interest rates. Central bank officials had already signaled that rate hikes would be on the table at their policy meeting in mid-September.