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By Daniel Leussink
TOKYO (Reuters) – Japan’s household spending fell sharply for the third month in a row in October, although the pace slowed as consumer sentiment struggled to completely eradicate the coronavirus pandemic.
The world’s third-largest economy has lagged behind other nations in the wake of the health crisis, mainly due to slow consumption. Analysts expect consumer sentiment to rise this quarter as local COVID-19 infections decline.
Household spending fell 0.6% in October from a year earlier, after falling 1.9% in September and falling by 3.0% in August, according to government data, in line with the average market forecast for the Reuters survey.
The month-on-month figures were positive, with a 3.4% increase in the number of emergencies due to the virus after the end of September. This was slightly lower than the 3.6% profit forecast.
Politicians hope that the rebound in domestic demand will help the economy as manufacturers navigate a global chip shortage and suffer from rising commodity prices.
But separate data on Tuesday showed that real inflation-adjusted wages fell by 0.7% year-on-year in October, falling for the second month in a row and a sustained recovery in consumer sentiment.
The Japanese government unveiled a $ 490 billion spending package last month as it seeks to stand firm on the path to reviving its economy in the face of a global trend against the stimulus of the crisis mode.
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