Japan’s household spending rose 4.7% yoy in May, sharply above expectations of 1.2% yoy and marking the fastest pace of growth since August 2022. Seasonally adjusted monthly spending also surged 4.6% mom, well ahead of the 0.4% mom consensus and the strongest gain since March 2021. The internal affairs ministry attributed the jump to robust demand for cars, dining out, and summer-related appliances.
By category, transportation and communications spending soared 25.3% yoy, while recreation and leisure climbed 11.1% yoy. Furniture and home appliance purchases rose 9.3% yoy as households prepared for a hot summer. Food spending, which accounts for nearly a third of total consumption, rose 1.0% yoy as price pressures eased and dining out increased.
Officials highlighted that the three-month moving average of household spending has remained positive since December 2024, suggesting a durable recovery in consumer demand.
