AI Data Insight
DataTrack data shows that the year-on-year growth rate of real average household spending on goods in Japan for Q2 2026 reached 2.3%, a sharp rebound from the previous -4.7% and returning to positive growth. Although overall household consumption still declined slightly, large durable goods such as automobiles saw explosive growth, benefiting from the abolition of the "Environmental Performance Levy". Looking ahead, with real wages turning positive for four consecutive months, domestic demand is expected to gradually bottom out and recover amid the trend of "selective consumption" by budget-conscious citizens.