JAPAN’S household spending posted an annual drop for the fourth straight month in November, a weaker-than-expected reading that threw into doubt hopes that a consumer demand recovery will give a major boost to the economy in the final quarter of 2021. Household spending fell 1.3 percent in November from a year earlier, government data showed Friday, a surprisingly weak outcome compared with the market forecast of a 1.6 percent gain in a recent poll and dropping at a faster pace than October’s 0.6 percent decline. The month-on-month figures were also negative, losing 1.2 percent, weaker than a forecast of a 1.2 percent gain as households remained hesitant to increase spending despite lower COVID-19 infections than during the summer months. “Coronavirus infections had already come down, so this suggests consumers remain cautious about the outlook,” said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. The weak figures raise some concerns for policymakers hoping a rebound in consumer demand will support the economy as companies struggle with higher import cost due to a rise of raw material prices that have fueled global inflation. Consumer spending, however, was still expected to stage a fourth-quarter rebound after the heavy hit they took in the quarter before it, said Tsunoda. “There will be sharp growth, but private consumption won’t recover to pre-pandemic levels as it will be coming from a low base,” he said. Declining spending on overnight stays and eating out weighed on the headline figure, a government official said, adding those items got a boost from a campaign last year to stimulate domestic tourism and dining out. Spending on clothes and transportation increased compared to a year earlier, the data showed.(SD-Agencies) | 