Japan's Household Spending Drops for Seventh Straight Month

Japanese household spending dropped unexpectedly in June from a year earlier, marking a seventh consecutive month of decline, according to government data released on Friday.

The data showed that consumer spending fell 3.3% year-on-year, exceeding the median market forecast for a rise of 1%. On a seasonally adjusted, month-on-month basis, spending decreased 6.4%, versus an estimated drop of 3.1%.

This indicator will be among the factors the Bank of Japan will scrutinize as it decides whether to raise interest rates as early as September.