FX.co ★ Japan Personal Spending Unexpectedly Rebounds

In November 2025, household spending in Japan rose by 2.9% year-on-year, surpassing market predictions that anticipated a 0.9% drop, and overturning the 3.0% decrease observed in the prior month. This represents the most significant increase since May, driven by increased winter-related purchases and a reduction in inflationary pressures on some essential goods. Spending saw a recovery across several key sectors, notably in food, which grew by 0.9% from a decline of 1.1% in October. Similarly, expenditure in furniture and household items surged to 10.6% from a slight decrease of 0.3%, transportation and communication rocketed to 20.4% from a decline of 9.2%, and culture and recreation rose to 2.2% from a contraction of 0.6%. Additionally, there was accelerated growth in clothing and footwear at 7.5% compared to 6.3%, and in the education sector, which climbed to 10.2% from 7.6%. In contrast, declines slowed in housing, which improved to -1.8% from -9.1%, and in fuel, light, and water charges, which moderated to -1.2% from -3.2%. Meanwhile, spending on medical care slightly decreased to 2.6% from 3.6% previously. On a month-to-month basis, personal spending leaped 6.2%, notably exceeding the forecasted 2.7% and marking a recovery from a 3.5% contraction in October.