Japan’s household spending fell 2.6% year-over-year in December 2025, marking a sharp reversal from the 2.9% annual increase recorded in November 2025, according to data updated on 5 February 2026. The figures, measured on a year-over-year basis, compare spending in each month to the same month a year earlier.
The downturn in December suggests that any momentum seen in November’s figures was short-lived, raising fresh questions about the resilience of Japan’s consumer sector. With household spending a key driver of domestic demand, the negative reading may signal growing caution among consumers at the end of 2025, potentially complicating the outlook for broader economic growth going into 2026.
