AI Data Insight
In April 2026, Japan's average household real housing expenditure grew 7.6% year-on-year, moderating from the 15.3% increase in the previous month while maintaining steady positive growth. Although Japan's overall household spending has contracted for five consecutive months, sub-categories including housing, furniture, and transportation and communication delivered strong performances that beat pessimistic market expectations, benefiting from easing inflationary pressures and positive real wage growth. Looking ahead, as the effects of the "Shunto" spring wage hikes gradually materialize, short-term consumption momentum is expected to recover. However, it remains necessary to guard against the potential impact of the Bank of Japan's interest rate hikes on mortgage burdens.