Household spending down again, raising questions on BOJ exit
Weak consumption, global economic outlook underscore challenges
Japan39;s current account surplus hits record in FY202324

TOKYO, May 10 Reuters Japan39;s consumer spending fell for the 13th straight month in March, creating challenges for policymakers who are seeking to drive stronger real wage growth, a prerequisite for additional central bank rate hikes.

Household spending fell 1.2 in March from a year earlier, official data released on Friday showed, against economists39; median forecast for a 2.4 drop and following a 0.5 decline in February.

Weak consumption will likely keep the Bank of Japan waiting at least until October to confirm a virtuous cycle of wages and prices is in place before raising interest rates, said Takeshi Minami, chief economist at Norinchukin Research Institute.

Unless the currency crisis breaks out to trigger capital flight, the BOJ won39;t raise rates to defend the yen currency.

On a seasonally adjusted, monthonmonth basis, spending increased 1.2, much bigger than an estimated 0.3 contraction and a 1.4 rise in February.

The weak figures came a day after labour ministry data showed real wages shrinking two years in a row, as the rising cost of living outpaced nominal wages despite the biggest pay hikes, mainly among major corporations, in about three decades.

Consumption may have hit bottom, but the trend of thrifty consumers remains strong due to rising living costs likely…