Japan’s household spending contracted more sharply in March 2026, underscoring persistent weakness in consumer demand despite efforts to stabilize the economy. Year-over-year, spending fell 2.9% in March, according to data updated on 11 May 2026.
The decline marks a further deterioration from February 2026, when household spending was down 1.8% compared with the same month a year earlier. Both figures are calculated on a year-over-year basis, comparing each month’s outlays to those of the corresponding month in the previous year.
The back-to-back negative readings suggest that Japanese households remain cautious, with March’s deeper drop signaling increased pressure on consumption heading into the spring. Investors and policymakers will be watching upcoming data closely for signs of whether this downtrend in spending begins to stabilize or continues to weigh on growth.
