Economic Buzz: Japan spending falls for third month, signals fragile demand

Japan?s household spending fell 1.8% year-on-year in February, marking a third straight contraction and underscoring persistent pressure from elevated prices on consumer demand. Weakness was led by sharp declines in transportation, education, and discretionary spending, while food outlays also slipped. However, housing rebounded strongly, with modest gains in clothing and a notable rise in healthcare and recreation spending. On a monthly basis, spending rose 1.5%, recovering from January?s drop, but the rebound fell short of expectations, suggesting overall consumption remains fragile.

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