Japan's household spending is expected to drop slightly in August due to heavy losses from the natural disaster, despite the strength of the labor market and wage growth that supported consumption.
Household spending is expected to drop by 0.1 percent in August from a year ago, after rising by 0.1 percent in July, according to a Reuter's poll for 16 economists.
The government plans to set up an additional budget for disaster relief after it was hit by deadly cyclones, floods, heat and earthquakes. Household spending data measures changes in household spending of two or more persons on items such as food, housing, electricity, clothing, transport and education.
The data showed retail sales rose by 2.7% in August from a year earlier, against expectations of a 2.2% rise, after rising 1.5% in July.
