Household spending rose for a fourth month in Japan, showing resilience amid persistent inflation as the central bank continues to mull the timing of its next interest rate hike.
Outlays by households adjusted for inflation gained 2.3% from a year ago in August, led by spending on transport and entertainment, the internal affairs ministry reported Tuesday. The result beat the median economist estimate of a 1.2% increase.
Consumption accounts for more than half of Japan’s economic output and is a key gauge to see if the economy is turning resilient to rising costs of living. Japan’s economy has grown for five straight quarters through the second quarter of this year, even as higher U.S. tariffs weigh on exports.
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