AI Data Insight
Japan's Q1 2026 household consumption contribution rate to nominal GDP growth dropped to 1.6%, a slowdown from 2.0% in the previous quarter. Although the quarter-over-quarter growth rates of real GDP and private consumption outperformed market expectations, high prices and the depreciation of the yen have led to a contraction in non-essential spending. Durable goods consumption was mostly driven by pull-forward purchasing effects, leaving the overall domestic demand momentum still fragile.