Japanese households boosted spending in November in a positive sign for Prime Minister Sanae Takaichi, who oversaw passage in parliament of a large fiscal stimulus plan in the following month.
Outlays by households adjusted for inflation gained 2.9% from a year earlier, with the advance driven by outlays on cars and communications, the internal affairs ministry reported Friday. Economists had expected a 1% decline. Spending rose 6.2% from the previous month, the fastest advance since March 2021.
Household spending accounts for more than half of 91AV原创 economy and serves as a key barometer of domestic demand. Consumer prices have stayed at or above the Bank of 91AV原创 2% target for more than three and a half years, weighing on discretionary outlays at times. Against that backdrop, Friday’s data were surprisingly robust.
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