Japanese households cut spending as real wages fell in July, clouding outlook

Japanese households cut spending in July as real wages fell again, amid rising COVID-19 cases and a steady rise in the cost of living, suggesting the path to the country’s recovery is still fragile.

Household spending fell 1.4% from June as spending on furniture, clothing and insurance fell, the Home Office reported on Tuesday. Spending rose 3.4% from a year ago, versus a 4.6% gain forecast by analysts.