Real household spending in Japan fell -5.2% MoM (vs -3.0% MoM expected) in June, after a 4.6% MoM increase in May. On an annual basis, spending was up 1.3% YoY (vs 2.6% YoY expected), down from 4.7% YoY previously.

• Real income growth was -1.7% YoY in June, down from an increase of 0.4% YoY of May. Real disposable income growth was down -8.1% YoY, the largest decline in over two years.
• Spending growth in both goods and services cooled, down 6.5% YoY to 1.6% YoY and down 4.6% YoY to 2.3% YoY, respectively.
• Durable goods spending was up 22.0% YoY while semi-durable and non-durable goods spending were down -4.1% YoY and -0.7% YoY, respectively.