Japan year-on-year household spending drops for 8 straight months

TOKYO, Sept 4 : Japanese household spending fell more than expected in July from a year earlier, government data showed on Friday, for an eighth straight month of declines.

• Consumer spending fell 3.6 per cent year-on-year, data from the internal affairs ministry showed, more than the median market forecast for a 1.6 per cent drop%.

• On a seasonally adjusted month-on-month basis, spending edged up 0.5 per cent versus an estimated 2.6 jump%.

• The indicator will be among factors the Bank of Japan will scrutinise as it decides whether to raise interest rates as early as this month.