Japan's consumer behavior is expected to remain on a recovery track after Tuesday's data showed household spending rose 3.7% in May from the previous month. "Recent consumer spending is likely being supported by recovering real wages--thanks to government caps on energy prices--and positive wealth effects" driven by rising share prices, SMBC Nikko Securities economists say. With rice prices on the downtrend and government energy subsidies helping to curb some pressures, households' inflation expectations are likely to start easing, they add. Separate government data released Tuesday showed inflation-adjusted wages rose 1.4% year-over-year in May. (megumi.fujikawa@wsj.com)
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Japan Consumption on Recovery Track Amid Real Wage Growth — Market Talk
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Japan's consumer behavior is expected to remain on a recovery track after Tuesday's data showed household spending rose 3.7% in May from the previous month. "Recent consumer spending is likely being supported by recovering real wages--thanks to government caps on energy prices--and positive wealth…