Real household spending in Japan increased 3.5% MoM (vs 0.5% MoM expected) but was down -0.5% YoY (vs -1.7% YoY expected) in February. This is the largest monthly increase since March 2022.

• Real income saw a sharper decline in February at -2.3% YoY, the lowest since February 2024.
• Real services spending was up just 1.0% YoY, falling from the 6.7% YoY increase in January.
• Real goods spending fell -1.5% YoY, an improvement over the -2.7% YoY decline previously.
• Spending on housing (-8.1% YoY), furniture (-8.7% YoY), and clothing (-12.5% YoY) was exceptionally weak.