JAPAN HOUSEHOLD SPENDING LOGS BIGGEST DROP IN 35 MONTHS IN JANUARY
In January, Japanese consumer spending experienced its sharpest decline in 35 months, according to data released on Friday. Household spending fell by 6.3% compared to the previous year, marking the 11th consecutive month of decline. This drop exceeded market expectations, which had anticipated a 4.3% decrease, and represented the largest decline since February 2021. On a seasonally adjusted basis, spending decreased by 2.1% compared to the previous month, contrasting with an estimated 0.4% increase. Several factors contributed to this decline, including reduced purchases of new cars due to factory suspensions, lower energy bills stemming from warm weather, and the comparison with higher spending levels in the same month last year, which was boosted by post-pandemic travel subsidies. Despite these figures, a government official attributed the decline to one-off factors and downplayed its impact on broader consumption trends.
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