AI Data Insight
In Q3 2026, Japan's real household housing expenditure plummeted by 16.4% year-over-year, marking a dramatic reversal from the 3.6% YoY growth in the previous period and becoming the biggest stumbling block dragging down overall consumption. Under the dual squeeze of shrinking real wages and high inflation, the market is widely concerned about the recovery prospects of Japan's domestic demand, which also puts the Bank of Japan's future interest rate hike path to the test.