Japan Personal Spending Unexpectedly Drops

Household spending in Japan declined by 2.9% year-on-year in October 2025, below market expectations of a 1.0% increase and a reversal from the 1.8% growth seen in the previous month. This was the first decrease since April, highlighting ongoing cost pressures as the year-end approaches. Monthly personal spending also dropped by 3.5%, contrary to the anticipated 0.7% rise, following a 0.7% decline in September.