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Japan household spending is still weak

In July, Japanese household spending dipped less than expected, and the jobless rate hit a two-decade minimum, providing some hope for policymakers battling to pull the world's number three economy out of stagnation.

However, with the economy barely surging  and inflation dropping further away from the Bank of Japan's 2% target, the vast majority of economists expect the BOJ to ease further next month.

Household spending sagged 0.5% in July from a year earlier, which is less than a median market forecast for a 0.9% descend and much smaller than June’s 2.3 sag, data from the Internal Affairs Ministry demonstrated on Tuesday.

Separate data revealed that retail sales sank 0.2% in July from a year earlier, which is less than a median market forecast for a 0.9% tumble.

As for the jobless rate, it sagged  to 3% in July from 3.1% in June, reaching the lowest rate in more than 21 years and also hovering close to levels considered to be full employment.

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