AI Data Insight
In Q2 2026 (May), the average consumption expenditure for workers' households in Japan was 353,443 yen, pulling back from 364,781 yen in the previous month. However, the year-on-year decline in overall real household spending narrowed to 0.4%, outperforming market expectations of a 2.3% contraction. Although high inflation and a weak yen caused cuts in transportation and entertainment spending, consumption momentum has shown resilience at the bottom, supported by five consecutive months of real wage growth.