Japan’s Households Cut Spending Even After Real Wages Advance

Japan’s households reduced spending for a third straight month even after real wages turned positive, underscoring the fragile state of domestic demand.

Outlays by households adjusted for inflation fell 1.8% in February from a year earlier, a faster decline compared with January’s 1% retreat, the Ministry of Internal Affairs and Communications reported Tuesday. Economists had expected a 0.8% drop.