European Investor
10 Nov 2026, 09:01
Japan Household Spending Slumps in September as Current Account Surplus Narrows
Japan’s household spending weakened sharply in September, pointing to continued pressure on domestic consumption.
Household spending fell 2.8% month over month, compared with expectations for a 0.3% increase and a 0.1% gain previously. On an annual basis, spending dropped 6.8%, significantly worse than the 3.1% decline expected and the previous 3.1% contraction.
The weakness suggests Japanese households remain cautious amid pressure on purchasing power, potentially complicating the outlook for consumption-led economic growth.
Separately, Japan’s seasonally adjusted current account surplus narrowed to ¥1.82 trillion from ¥2.91 trillion previously, also below the ¥2.81 trillion forecast.
Japan’s household spending weakened sharply in September, pointing to continued pressure on domestic consumption.
Household spending fell 2.8% month over month, compared with expectations for a 0.3% increase and a 0.1% gain previously. On an annual basis, spending dropped 6.8%, significantly worse than the 3.1% decline expected and the previous 3.1% contraction.
The weakness suggests Japanese households remain cautious amid pressure on purchasing power, potentially complicating the outlook for consumption-led economic growth.
Separately, Japan’s seasonally adjusted current account surplus narrowed to ¥1.82 trillion from ¥2.91 trillion previously, also below the ¥2.81 trillion forecast.
