Japan March household spending falls 2.9% year/year

TOKYO, May 12 : Japanese household spending fell more than expected in March from a year earlier, government data showed on Tuesday, extending declines to a fourth straight month.

• Consumer spending fell 2.9 per cent year-on-year, internal affairs ministry data showed, compared with the median market forecast for a 1.3 per cent drop.

• On a seasonally adjusted, month-on-month basis, spending dropped 1.3 per cent versus an estimated 0.6 per cent rise.

• The indicator will be among factors the Bank of Japan will scrutinise as it decides whether to raise interest rates in June or hold off until later.

• Japan’s real wages rose 1 per cent in March from a year earlier for a third straight month of gains.