Japan’s household spending declined for the fourth consecutive month in November, falling -0.4% yoy. While this was an improvement from October’s -1.3% drop and surpassed expectations of -0.8%, it still reflects ongoing consumer caution.
The decline was driven by significant cuts in expenditures on home appliances and food, highlighting weak domestic demand.
Spending on furniture and electric appliances plummeted by -13.8%, marking the third straight month of decline, while clothing and footwear saw a similar drop -of 13.7%, down for the second consecutive month. Food purchases also contracted slightly, falling by-0.6%.
Separately, Economy Minister Ryosei Akazawa acknowledged the challenges, stating that Japan’s economy is at a “critical stage” in shifting public sentiment away from deflation and toward sustainable growth driven by higher wages and investment.
