AI Data Insight
In Q1 2026, the year-over-year contribution of Japan's private consumption to nominal GDP reached 1.7%. Although slightly down from the previous 2.1%, it maintained a resilient positive contribution. Benefiting from substantial wage hikes in the "Shunto" spring wage offensive and government subsidy policies, service sector and apparel consumption showed resilience. However, Middle East geopolitical risks and crude oil price volatility may pose concerns for future real purchasing power.