Economic Buzz: Japan household spending falls 3.1%, contraction eases

Japan?s household spending fell 3.1% year-on-year in August 2026, marking a ninth consecutive monthly decline but easing from July?s drop. Persistent inflation kept consumers cautious, with spending weakening across food, clothing, housing and education, while transport and communication outlays returned to growth. On a seasonally adjusted monthly basis, spending edged up 0.1% for a second consecutive month, although growth slowed sharply from July.

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