Japan Household Spending

Household spending in Japan jumped 4.7% yoy in May 2025, reversing a 0.1% fall in April and far exceeding market consensus of a 1.2% rise. It was the fastest growth since August 2022, reflecting the impact of government measures aimed at boosting domestic consumption. Spending recovered for furniture and household items (9.3% vs -0.4% in April) and clothing (8.2% vs -2.1%), alongside solid acceleration in food (1.0% vs 0.3%), transport and communication (25.3% vs 2.4%), and culture and recreation (11.1% vs 7.9%). In contrast, spending slowed for housing (3.5% vs 10.9%) and dropped further for fuel, light and water charges (-1.5% vs -1.2%), medical care (-1.9% vs -4.4%), and miscellaneous items (-4.9% vs -8.6%). Education spending fell 1.7% after a 5.1% rise in April. On a monthly basis, household spending in Japan surged 4.6% in May, rebounding from a 1.8% decline in April and marking the sharpest increase in nearly four years. The figure also beat consensus of a modest 0.4% rise.