Japanese real household spending increased 0.4% MoM in November, a surprise increase over the expected decline of -0.9% MoM. The YoY decline in household spending, therefore, improved to -0.4% YoY from 1.3% YoY in October.

Real spending on goods declined -2.4% YoY while real services spending saw a significant acceleration to an increase of 2.2% YoY. The improvement in spending came on the back of a slight increase in real incomes of 0.7% YoY.