Japan Spending Slumps, Australia Growth Cools in June Data

Latest data from Asia’s two largest developed economies indicate cooling consumer momentum. Australian household spending rose 0.5% in June from May, undershooting the 0.8% market consensus and slowing from a 0.9% gain the month before. On an annual basis, spending was up 4.8%, broadly in line with expectations and stronger than the 4.2% recorded in May. Japan’s figures were considerably weaker. All-household spending fell 5.2% from May, reversing the previous month’s 4.6% jump. Year on year, spending grew just 1.3%, less than half the 2.7% forecast and sharply below May’s 4.7% rise. The mixed readings suggest that while Australian consumers continue to spend, albeit at a slower pace, Japanese households are pulling back, adding to signs of uneven demand across the region as central banks weigh the durability of the post-pandemic recovery.