Japan¡¯s household spending rose for a fifth month, providing some support for an economy that analysts say contracted in the third quarter, but coming in below expectations.
Outlays by households adjusted for inflation gained 1.8% in September from a year earlier, led by transportation and entertainment, the internal affairs ministry reported Friday. The result missed the median economist estimate of a 2.5% rise, with falling spending on housing and education dragging on overall figures.
Consumption accounts for more than half of Japan¡¯s gross domestic product. While spending held up despite the hit from inflation, a GDP report on Nov. 17 is forecast to show the economy has contracted in the three months through September, ending a five-quarter period of expansion. Exports have fallen while housing starts dropped due to regulatory changes.
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