Real household spending in Japan increased 0.4% MoM (vs -0.5% MoM expected) and was up 2.1% YoY (vs 0.2% YoY expected) in March. This is the largest annual increase so far this year.

• Real income saw a decline in March of -2.0% YoY, slightly better than the month before. The -2.5% YoY decline in disposable income was the weakest since April 2024.
• Real services spending was up 6.1% YoY, bouncing from the 1.0% YoY increase in February.
• Real goods spending fell -0.5% YoY, the smallest decline so far this year.
• Spending on durable goods (-5.4% YoY) and semi-durable goods (-2.3% YoY) was down, partially offset by an increase in non-durable goods spending (+1.0% YoY).