Japan's Household Spending Slumps for Seventh Month Amid Weather Disruptions

Japanese household spending dropped unexpectedly in June, falling 3.3% year-on-year, according to government data released on August 7.

This marks the seventh consecutive month of decline in consumer spending, with a median market forecast expecting a rise of just 1%. On a seasonally adjusted basis, spending decreased by 6.4% compared to an estimated drop of 3.1%

The Bank of Japan will consider this data when deciding whether to raise interest rates as soon as September.

Weather-related factors such as typhoons and increased rainfall were cited as contributing to the decline in outlays, although a ministry official stopped short of blaming it squarely on rising living costs.