Japan's Household Spending Decline Extends to Eighth Month

Japanese household spending declined for an eighth consecutive month in July, according to data released by Japan's Ministry of Internal Affairs. The actual figure was worse than market forecasts, with a year-on-year decline of 3.6% compared to the same period last year.

The seasonally adjusted monthly figure showed a slight increase of 0.5% from June, but this was lower than expected. Analysts had predicted an annual decline of 1.6%, and a monthly rise of 2.6%.

The Bank of Japan will consider these figures when deciding whether to raise interest rates as early as this month. This development may have implications for the country's economic growth and monetary policy.