AI Data Insight
Japan's real average household spending in Q3 (August) 2026 fell by 3.1% year-on-year, narrowing from the previous -3.6% and beating market expectations, yet marking the ninth consecutive month of contraction. Although real wages have grown for eight consecutive months, factors such as high prices and a large population of retirees who do not benefit from wage hikes continue to suppress purchasing power. This fragile consumption may influence the Bank of Japan's subsequent pace of interest rate hikes.