Japan’s households cut back on spending for a second month in August, as the rising cost of living weighed on consumers’ budgets amid a summer wave of COVID-19 infections, suggesting fragility in the country’s recovery path.
Household outlays dropped 1.7% from July, the internal affairs ministry reported Friday. The decrease was led by housing and food. Spending increased 5.1% from a year ago, compared with a 6.7% increase forecast by analysts.
A separate report showed wages adjusted for inflation fell for a fifth consecutive month, hurting consumers’ spending power. Nominal wages rose at a faster pace compared with the previous month.