Friday, Aug 7, 2026
0830 JST (2350 GMT/1930 EDT Thursday, Aug 6) The Ministry of Internal Affairs and Communications releases the June average household spending.
Mace News median forecasts: +0.1% y/y (range: -2.5% to +3.1%) vs. May -0.4%; -3.7% m/m (range: -5.0% to -0.7%) vs. May +3.7%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s real household spending is projected to edge higher from a year earlier in June after declining for the last six months. It is expected to rise 0.1% after slipping 0.4% a month earlier as spending shows signs of stabilizing despite rising persistent inflation.
Household spending in June is seen edging up from a year earlier amid mixed economic signals. New passenger car registrations picked up, along with nationwide department store sales were higher. Conversely, supermarket sales edged down as cooler-than-usual temperatures limited demand for seasonal goods, while persistently rising prices also weighed on sales. Convenience store sales also edged lower in June.
Higher import costs stemming from a weaker yen and prolonged geopolitical tensions in the Middle East, has continued to weigh on household spending, as suggested by supermarket sales.
Demand for durable goods is expected to be supported by purchases of air conditioners amid hot weather and ahead of April 2027 when the government is scheduled to introduce stricter energy-efficiency standards.
On the month, real average spending by households with two or more people is forecast to fall 3.7% in June after increasing 3.7% a month earlier. It rose 1.6% in April after falling 1.3% in March and rebounding 1.5% in February.
In May, household spending edged down as the effects of weaker automobile purchases and a decline in domestic travel were partly offset by strong demand for air conditioners.
The firmer-than-expected May spending data, which rose 1.4% in nominal terms, also reflected higher funeral expenses and widespread increases in private university tuition fees. Spending on culture and recreation, including domestic and overseas travel, fell 3.1% in May. In contrast, expenditures on furniture and household goods jumped 23.0%, possibly as consumers stocked up on petroleum-derived products such as plastic wrap and garbage bags.