Japan October household spending falls at fastest pace in nearly 2 years

Japanese household spending unexpectedly slumped at the fastest pace in nearly two years in October, government data showed Friday, raising concerns about the economic outlook as the Bank of Japan gears up for a rate hike as early as this month.

Consumer spending fell 3.0% in October from a year earlier, internal affairs ministry data showed, the first decrease in six months and falling at the steepest pace since January 2024. It was worse than the median market forecast for a 1.0% rise.