AI Data Insight
Latest data shows that as of November 2025 (Q3), the contribution of Japan's private consumption to real GDP growth reached 0.6%, expanding further from 0.4% in the previous quarter, indicating a significant recovery in domestic demand momentum. This growth primarily benefited from the realization of wage hike effects from the 2025 Shunto (spring wage negotiations) and easing inflationary pressure, with the restoration of real purchasing power acting as a key driver. Despite risks of an overseas economic slowdown, the market generally expects that the virtuous cycle of wages and prices will continue to support consumption resilience in 2026.