Japan Household Spending in July: Updated Sept. 5, 2026.

Japan's household spending in July drops 3.6% on year

Ideas

Yes a combination of weather and increased prices can cause a decrease in spending but eight straight months of deceased spending is not only because of the changes in weather but because consumers in Japan have been cutting back and spending as little as possible or only as a little as needed, due to continued inflation in the Japanese economy.

Yes, 301,245 yen might have been the average but it might be more important to see just how much the lower-income, fixed income and even part-timers spend in Japan as that might be better picture of how much inflation is affecting consumers in Japan.

For the most part, most likely the upper middle income groups in Japan probably don't feel inflation that much as when the go to the supermarket they most likely don't even compare prices or even worry about the prices.

A decrease of 1.3 percent might not seem like that much but it's enough to be concerned that there is still a possible significant affect related to inflation and at the same time its very interesting how the weather, again, can have an affect on what consumers buy or not buy related to winter type weather and even summer type weather.

Unfortunately, sellers and producers of products have to make estimates on how much to make or produce and how much to buy and then sell to consumers but as always the estimates can be wrong due to many variables such as the weather, the change in mood of consumers, and of course the changes in inflation due to the increase in the prices of imports which are always passed on the the consumer in Japan these days.

Yes, the eating and buying habits of consumers in Japan are changing these days as they are looking for more convenience in their lives and even of course trying to cut back on spending as needed.

And the same thing is happening in South Korea too has prepared foods are now big as office workers in South Korea too are looking for convenience and at the same time looking to cut back on spending as much as possible.

Energy and water bills most likely can be very expensive in Japan and especially for the lower income groups, the fixed income groups, and of course those who only work part time in Japan these days.

But once again, most likely, the upper income groups probably don't even notice how much their energy and water bills are as they just pay them as it really doesn't affect their lives that much.

Yes, in most economies globally the standard GDP metrics are related to consumers spending + business investment or spending + government spending + export - imports to determine how much each economy grew or didn't.

And its been estimated that consumer spending or private consumption is now about 55 percent of Japan's GDP which is a sizable number but at the same time, consumer spending seems to be the weak link for the Japanese economy as business spending, government spending and even exports seem to drive the economy more than consume spending.

The average income for at least two individuals at 689,476 might be correct but it should be remembered that up to 36 percent of workers in Japan are either part time or contract type workers with their pay not even near what the average worker gets at a Japanese name-brand company which can skew the results significantly.

And at the same time it should be remembered too, that up to 99 percent of companies in Japan are small and mid-size companies which don't have the needed resources to pay the same wages or salaries that the large Japanese companies pay.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20260904/p2g/00m/0bu/010000c

Japan March Household Spending: Updated May 18, 2026.

Japan's March household spending falls 2.9% on year, down for 4th month

Ideas

Japan's households have been living through a period of continued inflation almost since the pandemic started and as inflation continues with households having less disposable income and with a combination of the weak yen their purchasing power is even less than normal, so there is naturally going to be less spending in the economy.

And yes, the Middle East conflict is going to have some effect on prices and Japan and other Asian countries are heavily dependent on oil from that region. But at the same time, it has been suggested or reported that the Japanese government, this summer, is going to introduce energy subsidies to help reduce the financial burdens on households.

It should be noted that the 334,701 yen spent by households of two more people, while listed as an average, the lower income groups might have spend much less and of course the upper income groups might have spent much more.

But what is important, or notable, is how much less did the lower income groups spend and how much of the population is the lower income groups compared to the middle income or even upper income groups.

 A county is only so good if it tries to take care of it lower income groups, including the fixed income groups and even those on welfare. Income inequality has become a major challenge even now for Japanese society but is anyone really paying attention to what is going on or is everyone so stressed out about their own situation that there is no time to think about anyone else these days.

Spending on food can mixed as on some days shoppers might spend as much as they need but on other days they might only spend just enough and look for substitutes as the price of what they usually buy has become to expensive.

Alcohol for the most part might be considered a non-essential drink item and can easily be taken off one's shopping list if the prices get too high and or household budgets become to tight due to inflation.

And yes, even though there might have been one less Saturday, outlays for dining too might be or has been reduced due to less disposable income or less purchasing power for Japanese households recently. 

And of course in major cities where there might be less use of cars which means a little more disposable income spending on eating out might have increased and it should be noted that most smaller cities and towns have lower incomes that the large metro cities in Japan and as such they might fell the affects of inflation and loss of disposable incomes a little more that metro city residents in Japan, and they might be driving their car a little more which means less extra income to spend on other activities such as eating out.

Sluggish auto sales is nothing to be concerned about as there are always going to be a month here or a month there of less than expected sales, but if it become a quarterly situation or even a yearly situation, then that could be a major challenge for the Japanese auto industry.

And yes, the weather can have both positive and negative consequences depending on which side of the equation you are on. For consumers and households the warmer weather meant less spending on kerosene and electricity bills. But for energy companies the warmer weather meant less household spending which means of course less profits for the energy companies.

Japanese consumers seem to be always concerned with shortages and for example during the pandemic there were reported shortage of masks as some consumers in Japan tried to horde the mask supply and some places actually ran out of them and other couldn't find any masks.

And the same in the summer of 2024 when there was a news report about a possible earthquake in the Osaka area and consumers nationwide went on buying frenzy and horded as much rice as the could, which essentially started or increased the rice shortage that Japan was beginning to see in the stores.

So, its no surprise that Japanese households and consumers are doing the same thing now with spending on consumables as the potential for shortages, while maybe not very high, is enough for consumers to worry about possible shortages in the future.

Yes the Middle East conflict can has huge consequences across many global sectors as airline fuel prices begin to skyrocket, along with a multitude or other sectors being affected at the same time.

And lets not forget about the weak Japanese yen, which in essence not good for the average Japanese overseas traveler as Japanese consumer lose a lot of their purchasing power when buying things in overseas markets.

Of course Japanese consumers chose to travel within Japan due to the potential conflicts and the increased cost while traveling overseas. 

The average monthly income of 567, 663 might be for the upper middle income group but its certainly not for the 40 percent to workers in Japan who only work with limited contracts and not full-time work with good benefits.

Japan seems to have two-tried system of workers, those with good full-time jobs and those with only limited contract type work and the later again as suggested by some, can be up to 40 percent of the Japanese workforce.

An increase of 0.1 percent of spending my Japanese households is nothing to be excited about as the margin of error related to stats could easily make it - 0.1 percent just as easily too.

It's not a surprise that the Engel's coefficient increased in Japan as there has been continued inflation almost since the pandemic period and hasn't receded much since then. And for the most part, food companies, importers, and wholesalers, have been passing-on their increased costs to the next in the supply chain including the final retail customer.

While again, the upper middle class in Japan might not even notice the increase in spending on food but for the lower income groups, which might include those on limited work contracts, part-time workers who can't find a better job, or even those on fixed incomes will of course notice how much more expensive has become in Japan.

The certification scandal was not related to every car company but mostly related to a subsidiary of the Toyota group only so other car companies might have not had any real challenges with a decrease in car sales over that period.

Of course the World Expo in Osaka be an incentive for Japanese households and even international tourists to spend a little more than normal and any global even brings expected interest and spending for the host country.

For the most part, while not proven, Microsoft might have used the deadline of Windows 10 as a marketing ploy to get consumers to buy a Windows 11 new computer, and as usual it probably worked in Microsoft's favor.

Yes, consumer spending in most economies around the world is a major indicator as it could make up to 50 percent or more of an economy's GDP. in Japan's case, it is suggested to be about 50 percent of Japan's GDP, but in reality it might be a little less, or maybe never reaches the 50 percent mark, as consumer spending in Japan never seems to be where it should be due to many factors such as a the continued inflation situation, a workforce made up of 40 percent being limited contract workers, a large ageing population that tends to spend less as they get older, and a less than needed birthrate which is now beginning to affect the entire Japanese population overall. All of these factors in one way or another can have an affect on consumer spending in Japan.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20260512/p2g/00m/0bu/003000c

Japan Feb. Household Spending: Updated April 13, 2026.

 

Japan Feb. household spending falls 1.8% on year on weak spending on food

Ideas

Consumes, Japanese consumers in this case, have to feel good or somewhat good about the economy to spend and if their disposable income keeps decreasing and their purchasing power continues to decrease they will of course reduce their spending.

This is not rocket science or any secret economic theory here, consumers have to feel good and they need to see if their money goes a long way and if it doesn't they are going to reduce their spending.

There are many variables in the economy and global economy that can have an effect on prices and of course the Iran situation is just the latest variable to push prices up and of course the consumer is always the one that feels it as companies will always pass-on their costs to the next in the supply chain including the final retail customer.

Global companies, especially global oil companies, only really care about their stockholders and not anyone else in the global economy, as they are always protecting their profit margins and are quick to increase prices as needed and to make sure their earnings for each quarter don't go down.

It should be noted while stat nerds and those who need to see stat numbers are always obsessing over even the latest up and downs in the variables related to the economy, the average consumer may or may not notice much until they go to the supermarket or pay for gas at the gas station as their lives are just too busy to care about stats or numbers as they want to know why are prices always going up.

Yes, spending on food for most families is around 30 percent of their disposable income but for the lower-income groups, the fixed income groups, and the unfortunate mother of two children working on a temporary contract only might pay up to 40 percent or more of their total disposable income on food.

And yes, auto sales could potentially be a major investment for most families and for the lower-income groups it could be even more so its no wonder in the current economic climate I Japan that auto sales might have been less than expected.

Yes, of course consumers are more selective as their purchasing power and their disposable incomes continue to decrease so they are not just going to spend on everything or anything they want but try to choose wisely as they only have so much to spend.

For the most part, Japan families or consumers have been characterized as more savers than spenders while the US consumer has been labeled for the most part as more spenders, but of course people are people and you can't judge everyone on the spending habits of a few or even the saving habits of a few.

Yes real wages might be increasing some and the pace of inflation might be trending down, but for the average consumer they might not notice much yet, and of course for the lower-income groups they might never see any real difference in their disposable income or their purchasing power.

Elevated crude oil prices can affect everything in an economy and not just those who have cars as it could affect businesses that use gas and oil, consumer products too and companies have to deal with increased energy costs all through an economy.

Private consumption or consumer spending is estimated to be about 50 percent of Japan's GDP, which in itself might sound adequate but in reality, consumers again have to feel good about their incomes, their disposable income, and their purchasing power, and if they don't they might not spend to the point that spending reaches 50 percent of GDP and when it doesn't unfortunately the Japanese economy is not going to grow or expand like it should.

While the 589,038 yen might sound like a lot, which it is for some, the vast majority of families in Japan might reach that level as its just an average so there might be large group above that amount and an equal number below that number, which means they might not feel good about their income or their disposable income or their purchasing power which again means they are not going to spend to the level needed in the Japanese economy for the economy to grow or expand.

Have a nice day!

Article source:   https://mainichi.jp/english/articles/20260407/p2g/00m/0bu/017000c

Japan Household Spending Down: Updated March 18, 2026

Japan Jan. household spending down 1.0% on year on lower education outlays

Article source: https://mainichi.jp/english/articles/20260310/p2g/00m/0bu/010000c

Ideas

Ever since the pandemic or just after it, Japan has consistently had high inflation which has constrained household spending in Japan as disposable incomes have been decreasing over the last 3 or years, and as suggested in the article something has to give such as spending on education and communication services.

A decrease of 1.0 percent might not seem like that much but an economy the size of Japan a 1.0 decrease in spending might actually be quite large and as it was the second monthly decline Japan households are feeling the affects of inflation and are cutting in areas as needed.

 While 307,584 yen might seem a lot for some or not a lot for some depends on the overall level of income of the household as some lower-income households in Japan just don't have that much to spend to begin with so the average might be for the middle to upper-middle income groups but not the lower-income groups which are much more affected by inflation than the other groups.

Back in the early to mid 80's or even into the 90's Japan might have been considered a upper-income country or even a high-income country but those days are long gone as Japan wages have not kept up with wage increases globally and the average Japanese household makes much less than the households these days in the EU or even the US.

The university/college age population continues to decrease and some or many private universities and colleges in Japan are seeing their enrollments drop significantly have been decreasing tuition as a way to entice students to enter their respective schools.

At the same time, Japanese universities are increasing their foreign student enrollments to counter the decrease in Japanese students with more foreign students, but it remains to be seen if Japan immigration will actually allow enough foreign students into the country to offset the continued decrease in the Japan population.

The ageing Japanese population and the decrease in births in Japan has been a constant stress on Japan society for a very long time but, while other economies and other counties use increased immigration to help the situation Japan has not kept up with what other countries are doing as some have even suggested that Japan doesn't want to pollute its culture with too many foreign residents.

Yes, as inflation continues to reduce the disposable income of Japanese households, consumers continue to find ways to reduce their costs with even looking for cheaper mobile phones, which most likely are coming from China or even South Korea these days.

While utility bills might have decreased due to higher temperatures in December, it might not have been good for the clothing industry in Japan as the higher temperatures might have reduced spending at some retail places related to winter clothing and maybe might have forced some retail outlets to begin to advertise their spring selection of clothes.

At the same time, even though the temperature might have been much higher than expected utilities bills for the lower-income groups might still have been more than what they wanted to pay as they are on limited budgets and especially the fixed-income group groups and even the un-married women with children who don't have good jobs or working more than one part-time job just to make ends meet unfortunately.

Of course due to the continued inflation situation in Japan disposable incomes have decreased which means Japanese households have cut back on anything they feel they can do without on a temporary basis.

It seems housing expenditures, more likely have also increased to the point that households again feel they can and need to do without them as maybe, like everything else, costs have increased where its costs even more to get a house repaired in Japan these days.

Food, for most Japanese households sometimes sees an increase and sometimes sees a decrease depending on the mood of the families and the income level of the families too. Consumers, people can only cut-back so much before they feel the need to spend and buy things that make them feel good including food, which has a powerful effect on many. 

But of course the lower-income groups might see things differently as they have little extra to spare and can't splurge on dining out or even the normal fruit favorites that some families enjoy.

Durable goods are not a normal everyday purchase just food is an households buy them or save up to buy them when they really need them. In this case maybe Japanese households felt the need to finally get a new AC or washing machine as they maybe waited a long time due to the inflation situation in Japan and felt they couldn't wait any longer.

The Olympics, or the Football/soccer world Cup, or the World Series, or the World Baseball Classic are events that can encourage households to get a new television, and has Japan had a historic Winter Olympics maybe more Japanese households wanted to see what was going on.

Private consumption or consumer spending is estimated to be about 50 percent of Japan's GDP, while in the US its estimated to be about 68 percent as most likely Japan's might be a little too low and is not enough to really improve economic growth in Japan.

The average monthly income is just an average as most likely the real amount is much lower as it must be remembered that up to 70 percent of Japanese workers in Japan don't work for the large name-brand companies but for small and mid-size companies, which it is estimated to make up 99 percent of all companies in Japan.

It would be good if every two person households made 530,520 yen each month but most likely that is far from reality as Japan's inequality has been increasing every year since the early 90's when the asset bubble crashed in Japan.

while inequality is relatively mild compared to other countries, Japan has its share of those in the low-income groups, and they suffer like other low-income groups too globally.

Due to large companies, in Japan, having become more westernized, they have move toward a model of valuing shareholders over normal workers in a company which means many companies have moved toward only hiring part-time workers, contract workers, and for the most part less workers as needed to ensure shareholders get what they need or want each month.

Have a nice day!

Japan Household Spending Increases: Updated Jan. 10, 2026.

Japan's household spending in  November rises 2.9% as food outlays rebound

Article source: https://mainichi.jp/english/articles/20260109/p2g/00m/0bu/028000c

Ideas

Despite the continued high prices in Japan, Japanese households and consumers still need to buy food and some or many might just continue to spend on food and cutout expenses in other areas of their life.

But maybe that is not possible for the low-income groups as food expenses make up a larger share of their income compared to middle-income or upper income groups, and for sure it's a large part of the income of fixed-income households such as low-income people who have retired.

Japan used to be and of course probably is a country that women stayed at home and took care of the children and might have gone to the local supermarket once a day or every few days and made the meals.

 But these days is estimated that up to 70 percent or more of women in Japan work which means they might not have time to go to the supermarket as much as don't want or have time to make the normal meals like back in the day. 

So maybe prepared food and ready made foods and meals including dinner bentos from a department store or even a supermarket are now becoming even more common. 

And the same might be said for dining out as some Japanese households might go to a restaurant, not every night but at least once a week when they have the time.

Durable good as are not an everyday day item that is purchased like going to a supermarket but durable goods where out and as such they need to be replaced as places like Yodobashi Camera, which is its huge appliance floor, might see a lot of business from Japanese families either online or in their stores on the weekends.

As with everything else, and globally too, durable goods are not cheap so Japanese families have to save up to get that new refrigerator or washing machine too.

There is this miss-conception that some or many think Japan is this rich country, while that might have been the case, or at least on paper in the 1980's, Japan is not a rich country and not even close to it as its GDP is only around 37th in the world these days, and its GDP per capita is only around 40th place in the world.

Cars like durable goods too need to be replaced eventually and as Japan continues to suffer with higher than normal inflation, a new trend is taking place in Japan and the purchasing of not only new cars but secondhand or used cars too.

Back in the day buying a used car might have been unheard of as Japanese consumers preferred new quality products but again as inflation continues to erode the disposable income of Japanese households and Japanese consumers not only are used cars becoming a more viable option but for some even second-hand clothes stores too are becoming more viable.

While Apple and I phones might still dominate the smartphone market in Japan, Chinese smartphones, which of course are much cheaper than the I phone, are probably gaining market share as maybe the Samsung Galaxy is in Japan too.

Utility expenses in Japan have been increasing ever since the pandemic and some provinces in Japan and the overall Japanese government have increased their subsidies to help Japanese families. But at the same time, some families might still be cutting back their use of utilities as maybe the subsidies only help so much as don't cover all that is needed as again the low-income and fixed-income groups have significant reduced incomes and can't use the utilities as needed.

And now as winter has set in Japan seems to be much colder or cooler than usual this winter which means, some Japanese families might not be using whatever heating devices they have such as AC's for the upper-middle income groups and heated tables and blankets and especially the lower-income and fixed-income groups.

Consumer spending or private consumption is estimated to be about 50 percent of Japan's GDP but its seems that might not be enough to improve the Japanese economy, as Japanese are, or used to be more savers than spenders.

Consumer spending in Japan needs to be around 60 percent of GDP to see any really benefit for the Japanese economy but that is probably and unrealistic expectation at this time.

The average monthly income of salaried households of 519,00 yen or about $38,00 US dollars is not that much. But to be fair, its like comparing apples to oranges and even in Japan 519,000  yen these days might not go that far as again, in most Japanese families now women have to work and the two-income family has become common-place even in Japan.

And yes, inflation has reduced the real income and most importantly the disposable income of most families in Japan and Japanese families. Japanese households have less purchasing power to spend as needed in the economy to help the economy grow.

Have a nice day!

Japan Household Spending Decreases in Oct. Updated Dec. 16, 2025.

Japan household spending in Oct. falls 3.0%, down for 1st time in 6 monthsc

Article source: https://mainichi.jp/english/articles/20251205/p2g/00m/0bu/012000c

Ideas

Inflation in Japan has been a constant since the pandemic and it doesn't look like its going away anytime soon. Its not a surprise that car sales have decreased and food purchases are sluggish as Japanese consumers cut back and only buy the necessities.

Of course this doesn't look good for the Japanese economy as consumer spending, which its been suggested is 50 percent of Japan's GDP is not going to be enough to help the economy grow.

The spending of two or more people in households is just the average amount as most likely there are many more households above the average and many more below the average. But in reality, besides the 1% in Japan, there might not that many more above the average as Japan, once a somewhat rich country as not kept up with other advanced nations as is most likely well below the average for an advanced country.

For example wages or salaries in Japan are no where near the average level for advanced countries as salaries are way below the average which means salaries haven't really kept up with inflation as disposable income in Japan is not that much these days.

It seems deflation, which has been a major challenge in Japan for a very long time, is still evident with consumers either cutting back and or looking for cheaper products to buy these days.

An economy is very complex with some parts of it always doing very good and some parts of it not doing so good. Inflation or prices have a way of evening things out in an economy with some products and services doing better and then of course some products or services not doing as good as it depends a lot of on the needs and resources available to consumers.

Unfortunately as prices of food continue to increase consumers look for substitutes for what they normally buy with maybe some of the new food they buy being not as healthy as their original choices.

Unfortunately the lower-income and the fixed income groups use a lot more of their income on food purchases as that 30 percent for the average family could be much more in total value or volume for the lower-income and fixed income groups in Japan.

Again, as inflation continues in Japan consumers are cutting back on everything including housing repairs and housing maintenance Japanese households are most likely delaying repairs and trying to delay maintenance on their homes or apartments.

As Japan is an ageing society with its population getting older by the year, medical costs and medical services keep increasing as more senior citizens visit clinics and hospitals, and with the flu season now in full-force more citizens of all ages are visiting clinics and hospitals.

Private consumption or consumer spending might be half of Japan's GDP but that doesn't mean its good enough to help the economy as its much lower than consumer spending in the US or maybe even the EU.

Japanese consumers, for the most part, are more known as savers compared to US consumers who are more known as spenders and less as savers. If consumer spending on the Japan were to increase to 55 or even 50 percent of GDP that might be a significant improvement to help the Japanese economy grow.

But, to be fair, Japan has several disadvantages to improve its consumer spending situation. For one its ageing population is getting older by the year and older populations tend to spend less. And there is the immigration situation, which could potentially help with the consumer spending situation but at the present time Japan doesn't seem to want more immigrants into its country which could significantly help with spending.

Have a nice day!

Japan Household Spending: Updated Nov. 8, 2025.

Japan's household spending in September rises 1.8% on year

Article source: https://mainichi.jp/english/articles/20251107/p2g/00m/0bu/012000c

Ideas

Consumer spending or household spending is never perfectly linear as it goes through periods of ups and downs depending on the disposable income of consumers and households.

Most likely, as the summer season just passed or the Obon season, many Japanese households might not have traveled during the 2025 summer season and saved their money so there was slight increase in spending in Sept. due to more disposable income left to spend.

Averages of households spending 303,214 yen or $2,000 is just an average and never a really good way to see what is happening among all households or consumers in Japan. 

A better way might be to see the variance between the average and the most spent and the least spent to see what is happening in the Japanese economy.

For example, the low-income groups might not have spent even near that amount as they just don't have the same disposable income as the average household does. 

And of course the upper-income groups might have spent even more than the average group as they don't seem to worry about inflation or expenses or much of anything.

Yes, spending on food is always challenge for all income groups, for the most part, but its even more of a challenge for the middle-income groups and the lower-income groups as they have to use more of their income to buy food, which then means they might have less disposable income for spending on other things in the economy.

Most likely as food prices continue to be very high in Japan the lower-income groups, especially, might be looking for substitutes for their normal food choices as they just can't afford what they normally buy each day or each week.

It's interesting that secondhand cars or used cars have become more popular in Japan, but its not surprising as households and consumers, due to increased inflation, are looking for ways to save money or stretch their budgets, so the idea of buying a used car might not be that of a surprise and it seems Japan likes new quality products over older used products.f

And even the idea of mini vehicles, or very small vehicles, have become more popular as the price of these vehicles might be much less than a mid-size car from Toyota, Honda, or even Nissan.

The World Exposition in Osaka might have boosted culture and recreation spending some but it needs to be taken with a grain of salt, as what would be the spending on these items without the expo. 

As for example, as inflation continues to be a major challenge in Japan, how much was really spent on package tours in Japan and how much was really spend on package tours abroad, especially with the Japanese yen being weak, which causes less purchasing power for Japanese tourists overseas.

Spending on health care and medical services will most likely continue to increase in Japan as the Japanese population is now one of the oldest aging populations in the world which means there is going to be more and more spent on health care and medical services in the future.

At the same time, as Japan has one of the best health care systems in the world, the low-income older citizens in Japan and the fixed income citizens can't afford to spend a lot on health like senior citizens might have to in the US.

Private consumption or consumer spending needs to be broken down to see just who is spending what in Japan, as or course most likely the upper-income groups might be spending a lot, the middle-income groups might be spending too, but not as much, and the low-income groups might be spending as little as they can as they just don't have anything left over after taking care of their essential needs.

But overall, consumer spending is not where is it should be to really help the Japanese economy to grow, as most likely due to inflation and other factors such as low wages, the middle-income groups and the low-income groups just don't have the extra income needed to help the economy grow, as they have to watch their budgets very carefully and can't afford to spend much in the economy.

And again, while 510,935 yen might sound impressive, it must be remembered that not everyone in Japan has that kind of income, as the salary listed most likely is for a household of a large name-brand salaried worker and not the other 70 percent of workers in Japan who work for small and mid-size companies, which most likely make must less that the 30 percent who work for large companies in Japan.

So a better description might be what is the real average monthly income of all workers in Japan and not just the large company workers, which would be a better way to see just what is the amount that maybe all workers in Japan have to really spend.

Have a nice day!

Japan Household Spending: Updated Oct. 9, 2025.

Japan's household spending rises 2.3% in Aug. on cars, leisure

Article source: https://mainichi.jp/english/articles/20251007/p2g/00m/0bu/014000c

Ideas

Spending in Japan during the summer months could partly be attributed to the Obon summer festival and travel season and some of it might be attributed to the summer company bonuses that were given out at the beginning of the summer.

And then there is the idea of pent-up demand as maybe some or many Japanese consumers, while tired of increased costs, have decide to spend again as pent-up demand or demand in waiting can only last so long before consumers feel the need to get out and spend either in the stores or online or travel again.

The average is just an amount that maybe some spent or maybe the median income as its likely not every two household spent that much which seems very high.

Then there is the idea that maybe the lower-income two households consumers didn't spend even close to that amount, but it was mostly likely the upper-middle or upper income groups that might have spent much.

And then there is the fixed income groups, who might be in the upper group, the middle group, and maybe the lower income group as older consumers just don't spend that much as they as the older a person get usually they spend less and less.

Transportation costs could be anything from buying a new car to spending on repairs to a car, which might have seen a rebound after a year less spending as buying a car is not a yearly expense but maybe only once every five years if even that.

But spending on car repairs could be a monthly, quarterly, or yearly situation depending on how often a Japanese consumer takes their car in for check-ups or repairs.

Spending on communication could mean buying a new smartphone or changing smartphone plans or a new telecom provider which can be relatively expensive in Japan.

Visitors going to the World Expo in Osaka might increased spending in Japan as maybe travel to and from the Expo might have required a hefty outlay for many visitors whether domestic or international visitors.

Spending on culture and recreation, might be less that normal as the continued inflation situation in Japan, might cause that category to see less spending than normal but it might actually increase during the summer months and this summer especially with the Expo in Osaka.

No doubt the record heat in Japan has increased the use of air conditioners in Japan as now most if not all Japanese households have AC's which might not have had them many years ago.

The problem again is maybe the lower-income groups or the fixed income groups might have limited their use of AC's as they just can't afford to run their air conditioners 24 hours day, like maybe some families might or run it for most of the day at least.

And if the news is correct there might have been a record number of people in Japan who had to visit the hospital due to heat related conditions.

Who knows for sure if it was the right thing back in the summer of 2024 to send out the advisory about the possible major earthquake as it seemed to cause a lot of confusion and uncertainty which caused a major surge in spending in Japan on bottled water and instant noodles.

Its like it was during the pandemic with some consumers, globally, hoarding some products and others could find what they needed.

Also in Japan, about the time, was the so-called rice shortage which again caused a surge of rice buying or hoarding of rice and consumers were worried that they would run out of rice which is a major food stable in Japan.

Private consumption or consumer spending is not as high in Japan as in the US where consumer spending might be close to 60 percent of GDP while in Japan is about 50 percent of GDP.

Consumer spending has always been a challenge in Japan ever since the Japanese economy moved into a stagnation phase with less growth which also included less consumer spending.

The average monthly income for salaried households might be what it is for large companies workers in Japan and might not be near that amount for workers of small and mid-size companies which make up about 70 percent of the actual Japanese workforce.

Those that work for the name-brand large Japanese companies might only be about 30 percent or the workforce in Japan and the small and mid-size companies don't pay what the large companies pay for wages which means there might be less spending in the economy by small and mid-size company workers.

Have a nice day!

Spending on Food on In Japan: Updated Sept. 15, 2025.

Proportion of spending on food hits record high in 80% of Japan cities

Article source: https://mainichi.jp/english/articles/20250902/p2g/00m/0bu/013000c

Ideas

Its not a surprise the food prices have increased in Japan, as inflation has increased almost every year since the pandemic.

What is interesting is, while there have been attempts to lower inflation nothing has really worked as prices are maybe at their highest ever in Japan.

Usually, such as in the US and the EU and other countries the central bank would increase the key rate as an incentive to get people to spend less and borrow less.

But in Japan the Bank of Japan never increased the key rate as they kept insisting that the Japanese economy was just too weak for a rate increase.

Japan, for the most part, for the last 20 years or so was driven by deflation so prices were lower than maybe they should have been in an economy the size of Japan, and when inflation did start to increase a lot Japanese consumers didn't know what to do.

The Engel coefficient is more like an average as yes, families are spending more on food but again it depends on each family.

Its been shown that low-income families and fixed income groups spend more on food than higher-income groups, which is logical as low-income group have less money to spend and use a larger share of their income on food.

All the coefficient is showing is the cost of food in a city and or the level of income in a city compared to other cities in Japan.

It might also indicate how much food prices have increased from city to city as maybe some cities or companies in those cities passed on their raw material costs more compared to other cities.

Also its important to think about the level of income of each city as some cities have more income and the also they type of worker in a city as wages and salaries might be much different in each city.

Japan, for a long time, had this stereotype of being this rich country but if you looked under the surface its been known not to be one of the richest countries in the world and has some of the lowest salaries for large company employees.

And then there is the idea of part-time workers and the minimum wage which again Japan might have some of the lowest minimum wage rates in the world too.

Unfortunately, many part-time workers in Japan, these days are women with families and children who need to work to help support their families and some might be single family workers.

Yes, around the time of the pandemic noticeable inflation hit Japan and has continued to increase ever since then and consumers, again, were unsure what do to as before that time, deflation was in Japan, which meant lower prices on most things.

The problem in Japan was/is consumer spending, which is about 50 percent of GDP in Japan was/is always a challenge and which means it never reached it full potential.

As a result, while other countries which experienced inflation also had increased consumer spending too, but Japan was the opposite as its consumers never spent like they did in the US which meant the Bank of Japan really couldn't use the key rate to reduce spending as it was always very low.

Again, each city in Japan is different as for example Osaka, which is Japan's second largest city or metro area, might not be that affluent as its coefficient was 31.2 which means that workers in Osaka might not have a much money as some other workers in other cities.

It also might mean Osaka has more workers who work for small and mid-size companies compared to large companies like in the Tokyo metro area.

And then there is the continued problem with rice prices as rice is a major food staple in Japan but has had problems ever since the summer of 2024 when there was a supposed rice shortage and prices have yet to decrease going on over one year.

Japan back in the 1960's had sustained inflation which at the time was due to the Japanese economy mostly overheating as it was growing very fast, maybe too fast, and prices were just too high at that time.

And at that time Japan was still coming out of the WW11 period and growth was increasing but not all of Japan had reached the level of a emerging country just yet as it took another decade for all of Japan to reach that level and then again, exploded into a major economy in the 1980's and it was thought of at that time it would over take the US and its economy, which of course it never happened. as some today say Japan back in the 1960 to 1980 period grew too fast and didn't really build as solid growth foundation for the future as might evidenced today.

Have a nice day!

Japan Household Spending: Updated Aug. 13, 2025.

Japan's household spending rises in June for 2nd straight month

Article source: https://mainichi.jp/english/articles/20250808/p2g/00m/0bu/028000c

Ideas

Japan household spending is always suspect as inflation continues to be a constraint on spending in Japan.

It must be remembered prices in Japan are always a problem as the increase in prices covers-up how much Japanese consumers really spend.

As the summer in Japan continues to get hotter, the electricity prices will continue to go up and Japanese households try to stay cool.

Auto purchases are not a weekly purchase as they might be bought once ever few years if even that.

Spending in Japan, like other countries might be more related to inflation and things consumers need to buy instead of buying for what they want.

So the 295,419 might be more related to having to buy things instead of wanting to buy things.

And yes, as far as the tariffs go, Japan consumers probably are not going see the real effects anytime soon as Japanese companies and importers, initially might absorb the costs but overtime might begin to pass-on the costs to the Japanese consumer.

Japan has had certification problems for a few years and can't seem to get past it, as there might have been deliberate attempts to keep production going or just simple lack of awareness during the certification process.

Food prices just keep going up in Japan and then there is the rice situation which has been on-going now for over a year.

To make matters worse this summer is another record breaking heat which is going to significantly effect the rice harvest for 2025.

The so-called cheaper rice brands are probably just as good as the so-called name brands but Japanese consumers were reluctant to buy the cheaper brands until they have been hit consistently with high rice prices.

And yes, whenever there is a major heat wave there is always going to be a rush to buy air conditioners.

An increase in housing repairs and maintenance costs might be the result of Japanese workers getting their summer bonuses and used the bonuses to repair their homes.

Private consumption or consumer spending is always a challenge for the Japanese economy, as Japanese consumers just don't spend enough to help the Japanese economy move forward, as they are more savers instead of spenders like in the US.

The fact that real income fell means that inflation in Japan continues to be high despite companies increasing wages and or increasing summer bonuses.

Which eventually means less spending in the Japanese economy as Japanese consumers have less purchasing power.

While the high summer bonuses are good for large company workers but the same can't be said for the 70 percent of workers in Japan that work for small and mid-size companies which just don't have the needed resources to pay the same summer bonuses or even the same wage increases which usually take place in April.

So the Japanese economy, if its not there yet, is headed for a system of have's, large company employees who make up about 30 percent of the Japanese workforce and the have-nots, which make up about 70 percent of the work force, and the income inequality is only going to get worse every year in Japan, which means less consumer spending in the Japanese economy over time.

Have a nice day!