AI Data Insight
Japan's latest nominal household spending for Q2 2026 reached a YoY growth rate of 1.0%, successfully reversing the previous Q1's -1.3% decline, reflecting an expansion in consumption amounts in an inflationary environment. A breakdown shows that the cancellation of the eco-car tax system led to a surge in auto sales, which, coupled with growth in transportation and housing expenditures, acted as the main drivers. As the Shunto (spring wage offensive) wage hikes gradually take effect and inflation slows down, the market expects consumption momentum to gradually bottom out and recover.