FX.co ★ Japan Personal Spending Rebounds More than Estimated

In May 2025, household spending in Japan rose significantly by 4.7% year-on-year, a notable recovery from the 0.1% decline recorded in April, and far surpassing market forecasts of a 1.2% increase. This surge represents the most rapid growth since August 2022, highlighting the effectiveness of government initiatives to stimulate domestic consumption. On a month-to-month comparison, household spending in May climbed sharply by 4.6%, bouncing back from a 1.8% drop in April, and achieving the most substantial rise in nearly four years. This result also exceeded the anticipated modest increase of 0.4%.