Household spending in Japan is the worst in more than 18 months

Japanese Household Spending July: -3.6% y/y, biggest drop since January 2024expected -1.6% ,prior -3.3%---September BOJ hike is near-fully priced (~87%), driven mainly by rising inflation and yields, not consumption strength. Weak household spending is a known, ongoing theme, not new information, and doesn't touch the inflation and yen-weakness arguments actually driving the hike case. The BOJ is tightening despite soft spending, not because of strong spending. This article was written by Eamonn Sheridan at investinglive.com.