Japan's household spending falls 6.8% in September despite rise in income

Japan's household spending declined by 6.8 per cent in September 2026 compared to the same month last year, even as household income increased, according to official data released by the Statistics Bureau of Japan on Tuesday.

Japan's household spending declined by 6.8 per cent in September 2026 compared to the same month last year, even as household income increased, according to official data released by the Statistics Bureau of Japan on Tuesday. The latest Family Income and Expenditure Survey, released by Japan’s Ministry of Internal Affairs and Communications, showed that average monthly consumption expenditure among households with two or more people stood at 289,536 yen (USD 1,833).

The bureau said consumption expenditure was "down 4.5% in nominal terms and down 6.8% in real terms from the previous year." The decline marked the tenth consecutive month of falling household spending in real terms, indicating continued weakness in consumption.

The fall in spending also deepened from August, when household expenditure had declined by 3.1 per cent year-on-year in real terms. On a month-on-month basis, household spending fell by 2.8 per cent in September after seasonal adjustment, compared with a marginal increase of 0.1 per cent in August.

The detailed survey data showed that several major spending categories registered declines during September. Spending on education fell 23.5 per cent in real terms, while expenditure on transport and communication declined 9.1 per cent.

Expenditure on fuel, light and water charges dropped 10.5 per cent, while spending on culture and recreation declined 8.7 per cent. Food expenditure also fell 2.5 per cent in real terms compared with September last year.

However, household income increased during the month, contrasting with the decline in consumption. According to the survey, average monthly income among workers' households with two or more people stood at 528,074 yen (USD 3,343).

The Statistics Bureau said household income was "up 3.4% in nominal terms and up 0.9% in real terms from the previous year." The figures showed that consumer spending continued to decline in September despite an improvement in inflation-adjusted income among workers' households. (ANI)