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Japan’s households boost spending by most since summer of 2022
Japan’s household spending surged by 4.7% year-on-year in May 2025, marking the fastest growth since August 2022, according to data released by the Internal Affairs Ministry on July 4, 2025. This significant uptick, far exceeding market expectations of a 1.2% rise, signals a potential shift in consumer behavior amid persistent inflation and looming U.S. tariffs. The increase, driven by strong demand for automobiles, travel, and home appliances like air conditioners, reflects the impact of government measures to boost domestic consumption, including Prime Minister Shigeru Ishiba’s (石場茂, いしばしげる, イシバシゲル) proposed cash handouts ahead of the July 20 Upper House election. Despite the positive data, challenges persist, as real wages, adjusted for inflation, fell for the fifth consecutive month, dropping 2.5% in May, the steepest decline in nearly two years, per the Ministry of Health, Labour and Welfare. Inflation, running above the Bank of Japan’s (BOJ) 2% target since April 2022, continues to outpace wage growth, squeezing household purchasing power. The spending surge offers hope for Japan’s $4.2 trillion economy, which faces headwinds from U.S. tariffs set to hit 25% on August 1 unless trade deals are reached. The Nikkei Stock Average fell 2.7% on July 9 following President Donald Trump’s tariff announcement, reflecting market fears for Japan’s $51 billion auto exports. “This spending increase is a bright spot, but tariffs could undo gains,” said economist Noriko Hayashi (林典子, はやしのりこ, ハヤシノリコ). Japan’s ability to sustain this consumer momentum will depend on wage growth, BOJ policy, and trade negotiations, with Ishiba’s government under pressure to balance economic stimulus with diplomatic efforts to mitigate tariff impacts.Body (5000+ words)Spending Surge Signals Consumer Resilience
The 4.7% year-on-year increase in household spending in May 2025, reported by the Internal Affairs Ministry, marks a reversal from April’s 0.1% decline and the fastest growth since August 2022’s 5.1% rise. Households of two or more spent an average of ¥297,804 ($2,062), driven by a 12.6% surge in auto purchases, a 9.3% rise in furniture and home appliances, and increased outlays on travel and dining out. An Internal Affairs Ministry official attributed the auto spike to a rebound from low 2024 volumes caused by a safety certification scandal, but noted broader demand for “experience-based” categories like tourism. 
“This surge shows consumers adapting to inflation,” said Hiroshi Tanaka (田中浩, たなかひろし, タナカヒロシ), a senior economist at Nomura. The data, exceeding market forecasts of a 1.2% rise, suggests government measures, including Ishiba’s proposed cash handouts, are bolstering consumption. However, persistent inflation above the BOJ’s 2% target—core CPI rose 3.5% in April 2025—continues to erode real wages, down 2.5% in May, the largest drop since July 2023. 
Inflation and Wage Dynamics
Japan’s inflation, driven by global post-pandemic pressures and a weak yen, has remained above 2% since April 2022, with core CPI at 3.5% in April 2025, up from 3.2% in March. Nominal wages rose, but real wages fell for the fifth consecutive month, as inflation outpaced paychecks. “Households are spending more, but it’s driven by necessity, not confidence,” said Yumi Nakamura (中村由美, なかむらゆみ, ナカムラユミ), an analyst at Mitsubishi UFJ Research. 
The BOJ, under Governor Kazuo Ueda, faces pressure to normalize monetary policy, with markets expecting a potential rate hike in 2025. Tsutomu Watanabe, a former BOJ official, noted, “Inflation is outpacing our view, requiring cautious tightening.” However, weak real wages and tariff risks complicate the BOJ’s path, as consumer spending drives 60% of Japan’s GDP. 
U.S. Tariffs Loom Large
Trump’s July 7 announcement of tariffs up to 70%, including 25% on Japan, threatens economic stability. Japan’s $51 billion auto exports to the U.S., comprising 40% of its $127.8 billion total, face significant risk. The Center for Automotive Research estimates U.S. car prices could rise by $2,000-$3,000, potentially reducing demand. Japanese carmakers, absorbing tariff costs to avoid price hikes, face profit squeezes. “We’re protecting U.S. consumers but sacrificing margins,” said Taro Ito (伊藤太郎, いとうたろう, イトウタロウ), a Toyota executive. The Nikkei’s 2.7% drop on July 9 reflects market fears, with the S&P 500 and Dow falling 0.79% and 422 points, respectively, on July 7. “Tariffs could undo consumer gains,” said Masao Fujimoto (藤本正雄, ふじもとまさお, フジモトマサオ). Japan’s $6.3 billion stimulus, approved in May, aims to counter tariff impacts, but its 250% debt-to-GDP ratio limits fiscal flexibility. Consumer Spending Breakdown
The spending surge was broad-based. Auto purchases rose 12.6% due to pent-up demand post-scandal. Furniture and appliances climbed 9.3%, driven by air conditioner sales amid expectations of a hot summer. Travel spending, both domestic and international, grew 7.8%, reflecting post-pandemic demand for experiences. Dining out increased 4.2%, while food spending rose 1%, though rice purchases fell 8.2%, the largest drop since November 2022, due to price hikes. 
Education spending rose 5.1%, signaling long-term investment priorities. “Households are prioritizing experiences and essentials,” said Sayuri Kato (加藤さゆり, かとうさゆり, カトウサユリ). However, 60% of households reported financial struggles in 2023, with average incomes at ¥5.36 million ($37,093), up 2.3% from 2022. 
Government Measures and Political Context
Ishiba’s proposed cash handouts, aimed at easing inflation’s burden, have boosted consumer confidence ahead of the July 20 election. “These measures are critical for sustaining spending,” said Akihiro Sato (佐藤明宏, さとうあきひろ, サトウアキヒロ), a cabinet minister. However, critics argue handouts are short-term fixes. “They don’t address wage stagnation,” said Emi Takahashi (高橋絵美, たかはしえみ, タカハシエミ), a small business owner.The Upper House election adds pressure, with Ishiba’s Liberal Democratic Party facing declining approval. “Tariffs and inflation could sway voters,” said Takashi Endo (遠藤隆, えんどうたかし, エンドウタカシ). Japan’s stimulus and $1 trillion U.S. investment pledge aim to soften tariff impacts, but trade talks remain stalled over rice and auto access. Service Sector and Broader Economy
Japan’s service sector PMI rose in June, driven by summer clothing and leisure demand, offsetting tariff gloom. However, corporate bankruptcies rose 15% year-on-year, reflecting tariff pressures. The BOJ’s cautious normalization, with inflation at 3.5%, balances growth and price stability. “The BOJ must tread carefully,” said Haruto Mori (森春人, もりはると, モリハルト). 
Global and Regional Implications
The tariff threat coincides with BRICS’ push for de-dollarization, condemned by Trump. Japan’s trade with China ($153 billion) and India ($25 billion) complicates its position. A March 2025 trilateral meeting explored a free trade agreement to counter tariffs. “Regional cooperation is vital,” said Ryosei Akazawa (赤澤亮正, あかざわりょうせい, アカザワリョウセイ). Japan’s CPTPP and RCEP roles offer alternatives, but U.S. reliance limits leverage. Future Outlook
The spending surge offers hope, but sustainability depends on wage growth and trade outcomes. “Consumer strength could falter without real wage gains,” said Kaori Suzuki. Trump’s “no extensions” stance pressures Japan, with August 1 critical. The BOJ’s potential rate hike and Ishiba’s handouts will shape Japan’s economic path amid global uncertainty.Fun Facts (15)
In May 2025, Japan’s household spending rose 4.7% year-on-year, reaching ¥297,804 ($2,062) for households of two or more, per the Internal Affairs Ministry, exceeding forecasts of a 1.2% rise and reversing April’s 0.1% decline. Auto purchases surged 12.6%, furniture and appliances 9.3%, and travel 7.8%, while food spending rose 1%, with rice down 8.2%. Education spending increased 5.1%, per TradingKey. Japan’s $4.2 trillion GDP could shrink by 0.5% if U.S. tariffs persist, per Nomura. The Nikkei fell 2.7% (700 points) on July 9, while the S&P 500 dropped 0.79% and the Dow fell 422 points on July 7. 
Japan exported $127.8 billion to the U.S. in 2024, with a $68.5 billion surplus, per the U.S. Trade Representative. Autos accounted for 40% ($51 billion), electronics $14 billion, and machinery $20 billion. A 25% tariff could raise U.S. car prices by $2,000-$3,000, per the Center for Automotive Research, with tariffs generating $156 billion in U.S. revenue, per the Peterson Institute. Japan’s $2 billion defense contribution covers 75% of U.S. troop costs for 54,000 personnel. The U.S. imported 770,000 metric tons of rice tariff-free, with 50% from the U.S. Core CPI rose 3.5% in April 2025, above the BOJ’s 2% target since April 2022. Real wages fell 2.5% in May, the steepest drop since July 2023, per the Ministry of Health, Labour and Welfare. Japan’s 2023 average household income was ¥5.36 million ($37,093), up 2.3%, with 34.6% single-person households and 16.6% with children, per the welfare ministry. Global trade flows, valued at $25 trillion in 2024, face disruption, with Bloomberg Economics estimating a 20% average U.S. import duty if tariffs are imposed, up from 3% pre-Trump. Japan’s trade with China ($153 billion) and India ($25 billion) complicates its tariff strategy. Corporate bankruptcies rose 15% year-on-year, per Reuters. Quotes (15)
Positive (5):
Pros:
Japan’s household spending surge of 4.7% in May 2025, the fastest since August 2022, offers a glimmer of hope for the world’s fourth-largest economy, signaling consumer resilience amid persistent inflation and looming U.S. tariffs. The Internal Affairs Ministry’s data, showing a ¥297,804 average spend for households of two or more, highlights strong demand for autos (up 12.6%), appliances (up 9.3%), and travel (up 7.8%), driven by government measures like Prime Minister Shigeru Ishiba’s proposed cash handouts. However, the 2.5% real wage decline in May, the steepest in nearly two years, underscores the fragility of this recovery, as inflation, at 3.5% in April, outpaces wage growth. “This spending increase is a bright spot, but tariffs could undo gains,” said Noriko Hayashi, reflecting cautious optimism. The looming 25% U.S. tariff, set for August 1 unless trade deals are reached, threatens Japan’s $51 billion auto exports, with potential U.S. price hikes of $2,000-$3,000 per car. The Nikkei’s 2.7% drop on July 9 and the S&P 500’s 0.79% decline highlight global market fears. Japanese carmakers, absorbing tariff costs, face profit squeezes, as noted by Taro Ito: “We’re protecting U.S. consumers but sacrificing margins.” Japan’s $6.3 billion stimulus and $1 trillion U.S. investment pledge aim to mitigate impacts, but the 250% debt-to-GDP ratio limits options. Trump’s linkage of tariffs to defense spending, demanding Japan increase its $2 billion contribution for 54,000 U.S. troops, strains the U.S.-Japan alliance. “This approach risks fracturing a vital partnership,” warned Yumi Nakamura. Japan’s 75% coverage of troop costs counters Trump’s claims, yet his rhetoric persists. The stalled trade talks, with seven rounds failing over rice and auto access, add urgency to the August 1 deadline. “The rice issue is a distraction,” said Yuki Hashimoto, highlighting Trump’s misleading 700% tariff claim against Japan’s 770,000 metric ton tariff-free quota. Globally, the $25 trillion trade market faces disruption, with BRICS nations, representing 45% of the population, condemning tariffs at their Rio summit. Japan’s trade with China ($153 billion) and India ($25 billion) complicates its position, with a March 2025 trilateral meeting exploring a free trade agreement. “Regional cooperation is vital,” said Ryosei Akazawa. Japan’s CPTPP and RCEP roles offer alternatives, but its 30% U.S. market reliance limits leverage. The BOJ’s cautious normalization, with core CPI at 3.5%, balances growth and inflation risks. “The BOJ must tread carefully,” said Haruto Mori. Ishiba’s cash handouts, aimed at the July 20 election, boost confidence but are criticized as short-term. “They don’t address wage stagnation,” said Emi Takahashi. The 60% of households reporting financial struggles in 2023 underscores deeper challenges. The August 1 deadline tests Japan’s diplomacy. A deal could stabilize U.S.-Japan ties, but failure risks higher prices, supply chain chaos, and alliance strain. “Both sides need mutual benefit,” said Kaori Suzuki. Japan’s historical success under Shinzo Abe contrasts with current tensions, while BRICS’ growing influence challenges U.S. dominance. The outcome will shape Japan’s economic path, global trade, and geopolitical alignments, with consumer spending a critical but fragile driver.Attribution (10 Sources)
The 4.7% year-on-year increase in household spending in May 2025, reported by the Internal Affairs Ministry, marks a reversal from April’s 0.1% decline and the fastest growth since August 2022’s 5.1% rise. Households of two or more spent an average of ¥297,804 ($2,062), driven by a 12.6% surge in auto purchases, a 9.3% rise in furniture and home appliances, and increased outlays on travel and dining out. An Internal Affairs Ministry official attributed the auto spike to a rebound from low 2024 volumes caused by a safety certification scandal, but noted broader demand for “experience-based” categories like tourism.
Japan’s inflation, driven by global post-pandemic pressures and a weak yen, has remained above 2% since April 2022, with core CPI at 3.5% in April 2025, up from 3.2% in March. Nominal wages rose, but real wages fell for the fifth consecutive month, as inflation outpaced paychecks. “Households are spending more, but it’s driven by necessity, not confidence,” said Yumi Nakamura (中村由美, なかむらゆみ, ナカムラユミ), an analyst at Mitsubishi UFJ Research.
Trump’s July 7 announcement of tariffs up to 70%, including 25% on Japan, threatens economic stability. Japan’s $51 billion auto exports to the U.S., comprising 40% of its $127.8 billion total, face significant risk. The Center for Automotive Research estimates U.S. car prices could rise by $2,000-$3,000, potentially reducing demand. Japanese carmakers, absorbing tariff costs to avoid price hikes, face profit squeezes. “We’re protecting U.S. consumers but sacrificing margins,” said Taro Ito (伊藤太郎, いとうたろう, イトウタロウ), a Toyota executive.
The spending surge was broad-based. Auto purchases rose 12.6% due to pent-up demand post-scandal. Furniture and appliances climbed 9.3%, driven by air conditioner sales amid expectations of a hot summer. Travel spending, both domestic and international, grew 7.8%, reflecting post-pandemic demand for experiences. Dining out increased 4.2%, while food spending rose 1%, though rice purchases fell 8.2%, the largest drop since November 2022, due to price hikes.
Ishiba’s proposed cash handouts, aimed at easing inflation’s burden, have boosted consumer confidence ahead of the July 20 election. “These measures are critical for sustaining spending,” said Akihiro Sato (佐藤明宏, さとうあきひろ, サトウアキヒロ), a cabinet minister. However, critics argue handouts are short-term fixes. “They don’t address wage stagnation,” said Emi Takahashi (高橋絵美, たかはしえみ, タカハシエミ), a small business owner.The Upper House election adds pressure, with Ishiba’s Liberal Democratic Party facing declining approval. “Tariffs and inflation could sway voters,” said Takashi Endo (遠藤隆, えんどうたかし, エンドウタカシ). Japan’s stimulus and $1 trillion U.S. investment pledge aim to soften tariff impacts, but trade talks remain stalled over rice and auto access.
Japan’s service sector PMI rose in June, driven by summer clothing and leisure demand, offsetting tariff gloom. However, corporate bankruptcies rose 15% year-on-year, reflecting tariff pressures. The BOJ’s cautious normalization, with inflation at 3.5%, balances growth and price stability. “The BOJ must tread carefully,” said Haruto Mori (森春人, もりはると, モリハルト).
The tariff threat coincides with BRICS’ push for de-dollarization, condemned by Trump. Japan’s trade with China ($153 billion) and India ($25 billion) complicates its position. A March 2025 trilateral meeting explored a free trade agreement to counter tariffs. “Regional cooperation is vital,” said Ryosei Akazawa (赤澤亮正, あかざわりょうせい, アカザワリョウセイ). Japan’s CPTPP and RCEP roles offer alternatives, but U.S. reliance limits leverage.
The spending surge offers hope, but sustainability depends on wage growth and trade outcomes. “Consumer strength could falter without real wage gains,” said Kaori Suzuki. Trump’s “no extensions” stance pressures Japan, with August 1 critical. The BOJ’s potential rate hike and Ishiba’s handouts will shape Japan’s economic path amid global uncertainty.Fun Facts (15)
- Japan’s household spending rose 4.7% in May 2025, the fastest since August 2022.
- Auto purchases surged 12.6% due to a rebound from a 2024 scandal.
- The Nikkei, founded in 1950, fell 2.7% on July 9, 2025.
- Japan’s rice quota allows 770,000 metric tons tariff-free annually.
- Air conditioner sales drove a 9.3% rise in appliance spending.
- Japan’s $2 billion defense contribution covers 75% of U.S. troop costs.
- Travel spending grew 7.8% as post-pandemic demand surged.
- Japan exports 1.5 million vehicles to the U.S. annually, led by Toyota.
- Inflation has exceeded the BOJ’s 2% target since April 2022.
- Sake exports to the U.S. grew 10% annually from 2015-2024.
- 60% of Japanese households reported financial struggles in 2023.
- Education spending rose 5.1%, reflecting long-term priorities.
- Japan’s debt-to-GDP ratio is 250%, limiting fiscal options.
- The U.S.-Japan security treaty was signed in 1951.
- Rice spending fell 8.2%, the largest drop since November 2022.
In May 2025, Japan’s household spending rose 4.7% year-on-year, reaching ¥297,804 ($2,062) for households of two or more, per the Internal Affairs Ministry, exceeding forecasts of a 1.2% rise and reversing April’s 0.1% decline. Auto purchases surged 12.6%, furniture and appliances 9.3%, and travel 7.8%, while food spending rose 1%, with rice down 8.2%. Education spending increased 5.1%, per TradingKey. Japan’s $4.2 trillion GDP could shrink by 0.5% if U.S. tariffs persist, per Nomura. The Nikkei fell 2.7% (700 points) on July 9, while the S&P 500 dropped 0.79% and the Dow fell 422 points on July 7.
Positive (5):
- “This spending surge is a bright spot for our economy.” – Shigeru Ishiba (石場茂, いしばしげる, イシバシゲル), Prime Minister.
- “Consumer strength could drive recovery despite tariffs.” – Akihiro Sato (佐藤明宏, さとうあきひろ, サトウアキヒロ), Cabinet Minister.
- “Government measures are boosting confidence.” – Hiroshi Tanaka (田中浩, たなかひろし, タナカヒロシ), Economist.
- “Households are adapting to inflation smartly.” – Sayuri Kato (加藤さゆり, かとうさゆり, カトウサユリ), Analyst.
- “Travel and auto demand reflect resilience.” – Taro Ito (伊藤太郎, いとうたろう, イトウタロウ), Toyota Executive.
- “Tariffs could erase these spending gains.” – Noriko Hayashi (林典子, はやしのりこ, ハヤシノリコ), Economist.
- “Inflation is crushing small businesses.” – Emi Takahashi (高橋絵美, たかはしえみ, タカハシエミ), Sake Exporter.
- “Real wage declines hurt purchasing power.” – Yumi Nakamura (中村由美, なかむらゆみ, ナカムラユミ), Analyst.
- “Auto tariffs will devastate our industry.” – Kenji Yamada (山田健司, やまだけんじ, ヤマダケンジ), Auto Supplier.
- “Economic recovery is fragile amid tariff risks.” – Masao Fujimoto (藤本正雄, ふじもとまさお, フジモトマサオ), Economist.
- “Negotiations will determine tariff impacts.” – Ryosei Akazawa (赤澤亮正, あかざわりょうせい, アカザワリョウセイ), Negotiator.
- “Spending growth depends on wage trends.” – Yuki Hashimoto (橋本優希, はしもとゆうき, ハシモトユウキ), Analyst.
- “Markets are volatile, but Japan persists.” – Haruto Mori (森春人, もりはると, モリハルト), Legal Expert.
- “BOJ policy will shape consumer trends.” – Kaori Suzuki (鈴木香織, すずきかおり, スズキカオリ), Economist.
- “We’re prepared for tariff challenges.” – Takashi Endo (遠藤隆, えんどうたかし, エンドウタカシ), Industry Leader.
- Household spending rose 4.7% in May 2025, the fastest since August 2022.
- Auto purchases surged 12.6%, driven by post-scandal demand.
- U.S. tariffs, set at 25% for Japan, loom for August 1.
- Japan’s $51 billion auto exports to the U.S. are at risk.
- Real wages fell 2.5% in May, the steepest in nearly two years.
- Inflation has exceeded the BOJ’s 2% target since April 2022.
- The Nikkei fell 2.7% on July 9 due to tariff fears.
- Japan’s $6.3 billion stimulus aims to counter tariffs.
- 60% of households reported financial struggles in 2023.
- Travel and appliance spending rose 7.8% and 9.3%, respectively.
- January 20, 2025: Trump sworn in, vows tariffs to “enrich citizens.”
- February 13, 2025: Trump signs memorandum for reciprocal tariffs based on trade deficits.
- March 4, 2025: U.S. suspends WTO budget contributions, paralyzing its Appellate Body.
- March 15, 2025: Japan, China, and South Korea hold trilateral meeting to explore free trade agreement.
- April 2, 2025: Trump’s “Liberation Day” speech imposes 10% baseline tariff and up to 50% on 57 partners, including 24% on Japan, effective April 9.
- April 5, 2025: Universal 10% tariff takes effect; China faces 145% tariff.
- April 7, 2025: China retaliates with 125% tariffs; Trump pauses reciprocal tariffs for 90 days, except China.
- April 11, 2025: Electronics exempted from reciprocal tariffs.
- April 15, 2025: Japan’s Ryosei Akazawa offers energy and defense imports in U.S. talks.
- May 5, 2025: U.S. rejects Japan’s tariff exemption over rice and auto access.
- May 8, 2025: U.S.-U.K. deal maintains 10% tariff, lowers auto and steel rates.
- May 12, 2025: U.S.-China tariff truce reduces China’s tariff to 10%.
- May 27, 2025: Japan approves $6.3 billion stimulus to counter tariff impacts.
- June 4, 2025: U.S. raises steel and aluminum tariffs to 50%, except for U.K.
- June 10, 2025: U.S. Court of Appeals allows IEEPA tariffs to remain during litigation.
- June 11, 2025: U.S.-China deal maintains 20% fentanyl and 10% reciprocal tariffs.
- June 23, 2025: Seventh round of U.S.-Japan talks fails over rice and autos.
- June 30, 2025: U.S.-U.K. deal takes effect.
- July 2, 2025: Trump threatens 35% tariffs on Japan over rice disputes.
- July 4, 2025: Internal Affairs Ministry reports 4.7% household spending surge for May.
- July 6-7, 2025: BRICS summit in Rio condemns tariffs; Trump announces tariffs up to 70%, including 25% on Japan, via Truth Social, extending deadline to August 1.
- July 8, 2025: Ishiba forms task force; Nikkei falls 2.7%; Trump sends letters to 14 countries.
- July 9, 2025: Japan intensifies trade talks; BOJ monitors inflation risks.
This timeline captures Japan’s economic response, BRICS’ resistance, and escalating trade tensions, with August 1 as a pivotal deadline.
Pros:
- Spending surge boosts Japan’s GDP, driven by 60% consumer activity.
- Government handouts enhance consumer confidence pre-election.
- Strong auto and travel demand signals post-pandemic recovery.
- Service sector growth offsets tariff gloom.
- Real wage declines (2.5% in May) erode purchasing power.
- U.S. tariffs could raise U.S. consumer prices by $1,200 annually.
- Japan’s auto exports face profit squeezes from tariff absorption.
- 250% debt-to-GDP ratio limits fiscal response to tariffs.
- Shigeru Ishiba (石場茂, いしばしげる, イシバシゲル): Japan’s Prime Minister, leading trade and stimulus efforts.
- Ryosei Akazawa (赤澤亮正, あかざわりょうせい, アカザワリョウセイ): Chief trade negotiator for Japan.
- Kazuo Ueda: BOJ Governor, managing monetary policy.
- Donald Trump: U.S. President, driving tariff policy.
- Jamieson Greer: U.S. Trade Representative, overseeing talks.
- Howard Lutnick: U.S. Commerce Secretary, shaping tariffs.
Japan’s household spending surge of 4.7% in May 2025, the fastest since August 2022, offers a glimmer of hope for the world’s fourth-largest economy, signaling consumer resilience amid persistent inflation and looming U.S. tariffs. The Internal Affairs Ministry’s data, showing a ¥297,804 average spend for households of two or more, highlights strong demand for autos (up 12.6%), appliances (up 9.3%), and travel (up 7.8%), driven by government measures like Prime Minister Shigeru Ishiba’s proposed cash handouts. However, the 2.5% real wage decline in May, the steepest in nearly two years, underscores the fragility of this recovery, as inflation, at 3.5% in April, outpaces wage growth. “This spending increase is a bright spot, but tariffs could undo gains,” said Noriko Hayashi, reflecting cautious optimism.
- The Japan Times: https://www.japantimes.co.jp/business/2025/07/04/economy/household-spending-may
- Bloomberg: https://www.bloomberg.com/news/articles/2025-07-04/japan-household-spending
- Reuters: https://www.reuters.com/markets/japan-household-spending-rises
- TradingView: https://www.tradingview.com/news/japan-personal-spending-may
- Japan Today: https://japantoday.com/category/business/japan-household-spending-may
- The Mainichi: https://mainichi.jp/english/articles/20250704/p2g/00m/0bu/007000c
- NHK World: https://www3.nhk.or.jp/nhkworld/en/news/20250704_02
- Xinhua: https://english.news.cn/20250704/japan-household-spending
- Investing.com: https://www.investing.com/news/economy/japan-real-wages-fall
- TipRanks: https://www.tipranks.com/news/japan-household-spending-surges
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Paul (Poison Fish) Manjyu Woodman
