AI Data Insight
In the first quarter of 2026 (March), Japan's average real household spending fell by 2.9% year-on-year, deteriorating further from the previous value of -1.8% and falling significantly below the market expectation of -1.3%. Affected by high inflation and the depreciation of the yen, core expenditures such as food and utilities contracted significantly. Even with substantial corporate wage hikes, it remains difficult to reverse the weak real consumption momentum in the short term.