AI Data Insight
Japan's real household expenditure on durable goods dropped by 15.2% year-on-year in July 2026, a sharp reversal from the previous 1.4% expansion, becoming the hardest-hit segment dragging down overall consumption. Caught between inflation and weak real wages, demand for high-priced durable goods like automobiles has frozen. Overall household spending also recorded its eighth consecutive month of negative growth, highlighting the still-bumpy road to recovery for Japan's domestic demand.