FX.co ★ Japan Personal Spending Falls the Least in 5 Months

Household spending in Japan fell 0.5% year-on-year in April 2026, easing from a 2.9% decline in March and performing better than market expectations for a 1.5% drop. Although this marked the fifth consecutive month of contraction, it was the smallest decline in the sequence, indicating that easing inflationary pressures may be providing some support to consumer demand.

Spending on food declined at a slower pace (-0.5% vs. -2.9% in March), while expenditures increased for transport and communication (7.5% vs. -16.8%), housing (7.6% vs. 15.3%), furniture and household goods (19.0% vs. 5.5%), healthcare (6.7% vs. 20.1%), and culture and recreation (6.3% vs. 4.6%).

By contrast, spending weakened further on clothing and footwear (-10.9% vs. -2.6%) and utilities (-8.6% vs. -3.2%). Education expenditure also declined, falling 19.4% after a 2.1% increase in March.

On a seasonally adjusted monthly basis, household spending rose 1.6%, rebounding from a 1.3% decline in March and exceeding forecasts for a 0.8% increase.