FX.co ★ Japan’s Household Spending Reverses Sharply in December, Falling 2.9% MoM

Japan’s household spending contracted sharply in December 2025, marking a notable reversal from the previous month’s strong gain. According to data updated on 5 February 2026, spending fell by 2.9% month-over-month, following a robust 6.2% month-on-month increase recorded in November 2025.

The figures highlight increased volatility in consumer behavior at the end of 2025. While November’s data pointed to a strong upswing in household outlays compared with October, December’s decline suggests that momentum did not carry through into the year-end period. On a month-over-month basis, the latest reading compares the change in December to November, while the previous indicator measured November’s change against October.

The abrupt swing from 6.2% growth to a 2.9% contraction will be closely watched by observers tracking the strength and sustainability of Japan’s consumer sector, a key component of domestic economic activity.