Japanese household spending hits highest level since summer 2022 — Bloomberg

According to Bloomberg, Japanese household spending reached its highest level since summer 2022 at the end of June. Agency experts suggest this may indicate consumers' adaptation to rising prices and their willingness to support the economy despite pressure from US import tariffs.

Japan's Ministry of Internal Affairs and Communications reported that inflation-adjusted household spending rose 4.7% year-over-year. The increase was primarily driven by strong automotive demand, alongside growing consumer expenditures in both domestic and international tourism sectors.

However, Harumi Taguchi, chief economist at S&P Global Market Intelligence, questions the trend's sustainability, citing ongoing inflationary pressures on consumption and declining real wages as potential reversing factors.

US trade tariffs continue to weigh on Japan's economy. A Bloomberg survey of economists in early June found that approximately 64% of respondents expect the country to enter a recession due to American duties.