Japan’s household spending sags; jobless rate lowest in two decades

Japan’s household spending sags; jobless rate lowest in two decades

Japan\'s household spending sags; jobless rate lowest in two decades

Japanese household spending dropped again in April, official figures showed Tuesday, as consumers kept a tight hold on their purse strings despite years of government efforts to boost spending.

The fresh data attests to what analysts believe is a broader picture of the world’s third largest economy — it is picking up steam overall but tepid consumption continues to act as a drag.

Spending by households of two or more people shrank 1.4% year-on-year, extending its declining streak of more than a year, according to data from the internal affairs ministry.

Japan’s prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm.

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