Japan's household spending, wages weakness cloud economic outlook

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Japan's household spending, wages weakness cloud economic outlook
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Japan's household spending rose less than expected in April while real wage...

TOKYO - Japan’s household spending rose less than expected in April while real wages declined, adding to worries about consumption as global trade frictions weigh on broader economic activity.

Separate data showed inflation-adjusted real wages fell 1.1% in April from a year earlier, a sign consumer spending power was weakening. “Risks from global trade conflicts have risen. So if they adversely impact the economy further that could dampen corporate sentiment and then private consumption.” However, businesses now also face uncertainty about whether consumption will be able to grow enough to offset weakness in exports as escalating global trade frictions hurt corporate sentiment.

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