Japan's household spending fell more sharply than expected in August, as state of emergency curbs to combat the coronavirus pandemic weighed on consumption during the summer holiday season and risked undercutting the economy's recovery.
Friday's government data bodes ill for new Prime Minister Fumio Kishida's efforts to revitalize the pandemic-hit economy and distribute more wealth to households through higher wages.
The 3.0% year-on-year decrease in spending was worse than a median market forecast for a 1.5% drop and followed a 0.7% increase in July.