Japan’s households raise spending for first time in 4 months | Business and Economy
Spending rose 3.5% in June amid recovery in domestic tourism.
Japanese households increased their spending for the first time in four months in June, as increased demand for travel services was a positive sign of broader economic recovery prospects.
Government data showed on Friday, showing spending rose 3.5% in June from a year earlier, posting the first increase of the year since January as households opened most of their homes. Covers overnight stays, package tours and outdoor goods.
The data, stronger than the average estimate of a 1.5% increase in a Reuters poll, showed people are spending less on fish and vegetables, while also spending more on transportation.
Although the increase was larger than expected, it is unlikely to completely dispel worries that Japan’s recovery will still be slower compared to other leading economies such as the United States.
Separate data on Friday showed that Japan’s real wages extended their decline for a third straight month in June, as consumer prices rose faster than nominal wages in one month. worrying sign for households’ purchasing power.
A private sector survey earlier this week showed growth in services sector activity stalled in July as rising inflation and uncertainty about the global economy weighed on the economy. demand.
Some analysts have begun to warn that Japan’s economic recovery could slow in the current quarter after an expected expansion in April-June due to a modest recovery in consumer demand. after the government lifted COVID-19 restrictions.
Friday’s data showed spending also increased month-over-month, up 1.5% on a seasonally adjusted basis.
That gain, stronger than the forecast for a 0.2% gain, marked a recovery from a sharp 1.9% drop in the previous month.