That is correct, Japan’s October household spending declined by 1.3% year on year. However, this decrease was less steep than expected, meaning the economic situation could be slightly better than analysts predicted. Typically, household spending is a key indicator of a country’s economic health. As such, if spending decreases, it often signals that households are facing financial constraints. Conversely, if spending increases, it can indicate economic growth as it implies consumers are spending more. Japan’s smaller-than-expected decrease could suggest that its economy might be starting to recover from the impacts of the COVID-19 pandemic.
