AI Data Insight

In Q2 2026, Japan's average household spending on services reached 127,152 yen, reflecting a slight growth from Q1's 126,931 yen and demonstrating resilience in service sector consumption. Although overall household spending has contracted for five consecutive months, the decline has significantly narrowed and outperformed market expectations, reflecting that easing inflationary pressures and wage growth are gradually supporting domestic demand. Going forward, it is necessary to continue monitoring the BOJ's monetary policy and the boosting effect of summer electricity subsidies on real purchasing power.

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