AI Data Insight
In Q3 2026, Japan's average household services spending reached 114,867 yen, a significant rebound from the previous Q2 figure of 109,775 yen, demonstrating resilience in services demand. However, macroeconomic data showed that overall household spending in Japan fell by 3.6% year-on-year in July, worse than market expectations, reflecting that inflation fatigue continues to suppress spending on goods and discretionary items. Looking ahead, whether wage growth can translate into real purchasing power will be the key driver of the Bank of Japan's future interest rate hike pace.