FX.co ★ Japan’s Household Spending Slump Deepens in January, Extending Weak Consumer Trend

Japan’s household spending continued to decline at the start of 2026, signaling persistent weakness in consumer demand. In January 2026, spending fell by 2.5% month-over-month, a sharper contraction than the revised 2.2% drop recorded in December 2025, according to data updated on 09 March 2026.

The figures show that the downturn in household expenditure is not only ongoing but has intensified, with January’s decline exceeding that of the previous month. On a month-over-month basis, the latest “actual” reading compares January 2026 to December 2025, while the “previous” figure reflects the change in December 2025 from November 2025.

The deepening decline in household spending may raise concerns about the strength of Japan’s domestic demand and its ability to support broader economic growth, as consumers appear to be tightening their belts rather than increasing outlays at the beginning of the year.