Real household spending fell 6.8% from a year earlier in September, the Statistics Bureau reported on 10 November. That was the tenth straight annual decline and far worse than the 3.1% drop that economists had expected.
On a seasonally adjusted monthly basis, spending dropped 2.8%, after a 0.1% rise in August. Analysts had forecast a 0.3% gain. The fall was the biggest since September 2020.
Spending on education dropped 23.5%, transport and communication fell 9.1%, and culture and recreation declined 8.7%. Food spending fell 2.5%. Reuters reported that unusual weather, including typhoons and heavy rain, also weighed on the month.
Average monthly income in workers’ households rose 0.9% in real terms over the same period, so the weakness in spending was not explained by falling income. The weak reading also comes as the Bank of Japan weighs a further rate increase. See our earlier story on retail sales for the trend.
Sources: Trading Economics, household spending (9 November 2026); The Edge Malaysia, citing Reuters (10 November 2026); News On Japan (10 November 2026).
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Japan Household Spending Falls 6.8% in September, the Steepest Drop Since 2020