Real household spending in Japan dropped -1.8% MoM (vs -0.8% MoM expected) and was down -0.1% YoY (vs 1.4% YoY expected) in April.

• Real income was flat in April, the first non-negative YoY change since December 2024. Real disposable income was up 0.9% YoY, the first expansion in 2025.
• After being up 6.1% YoY in March, real services spending was down -0.8% YoY in April, the worst since October 2024.
• Real goods spending bounced back to an increased of 2.5% YoY in April, the strongest in around two years.
• Spending on durable goods surged 21.5% YoY with semi-durable goods spending up 3.6% YoY.