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: -2.4% y/y (range: -2.8% to -0.5%) vs. June -3.3%; +2.6% m/m (range: +1.9% to +3.3%) vs. June -6.4%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s real household expenditure is expected to decline for an eighth straight month in July as consumer sentiment remained cautious amid increasing signs of accelerating inflation, raising cost-consciousness among households and potentially intensifying their desire to save more to protect their finances for the future.
Real spending by households of two or more persons is expected to fall 2.4% on the year in July after dropping 3.3% a month earlier, when consumers spent less on health insurance premiums, airfares and gasoline. Typhoon-related weather and lower temperatures compared with a year earlier also dampened sales of clothing and appliances, including air conditioners.
On the month, household spending is expected to rebound 2.6% in July following an unexpected 6.4% drop a month earlier. It rose 3.7% in May and 1.6% in April after falling 1.3% in March.
There appears to be a mixed bag of factors affecting spending in July, with some positive signals seen in department store sales as demand for summer items, including clothing, increased. Consumption also appeared to have risen as households bought souvenirs to take back to their hometowns during the summer holidays and purchased food for summer vacations and trips.
Meanwhile, supermarket sales rebounded in July from the previous month, but gains were modest as consumers appeared to become more cost-conscious amid broad-based increases in costs. Rising procurement, packaging and labor costs appear to have pushed prices higher at supermarkets and affected consumers’ minds.