Japan Spending Falls 3.1% for Ninth Month

Japan's Ministry of Internal Affairs reported Friday that household spending fell 3.1% year over year in August 2026, the ninth straight month of annual decline. The drop was smaller than forecasts of 3.5% to 3.6% and milder than July's 3.6% fall; it was the mildest annual decline since May. Seasonally adjusted spending rose 0.1% from July, below the 0.5% forecast and slower than July's 0.5% increase. Real wages rose for an eighth consecutive month in August, per data released the prior Wednesday. Outlets disagreed on the precise consensus forecast, with some citing 3.5% and others 3.6%. Left-rated coverage was limited to one Bloomberg headline stressing spending falling despite wage gains. No right-rated coverage appears in the record. Eight months of real-wage gains have not reversed the nine-month spending slide. The Bank of Japan is weighing the data as it considers further interest-rate increases.