Household spending slid in June, but real wages rose at their fastest pace in more than 21 years thanks to higher summer bonuses, a sign that benefits of a prolonged economic recovery are broadening.
Household income also marked the fastest gain in three years on an increase in pay for temporary workers, offering some hope for Bank of Japan policymakers struggling to accelerate inflation to their elusive 2 percent target.
The figures come ahead of Friday's release of second-quarter gross domestic product data, which will likely show the economy expanded an annualized 1.4 percent after contracting in the previous quarter.