AI Data Insight
The year-on-year growth rate of Japan's real household services spending in May 2026 (Q2 2026) turned positive to 0.3% from -1.4% in the previous month, demonstrating strong recovery momentum. Although overall household consumption expenditure still saw a slight decline, the drop was much better than market expectations and benefited from increased demand for services such as dining out. As real wages have grown positively for five consecutive months, the gradual restoration of people's purchasing power is expected to become a key catalyst supporting Japan's domestic demand.