Japan's household spending declined 3.6% yoy in July 2026, deepening from a 3.3% drop in the prior month and underperforming market expectations for a 1.6% fall. It marked the eighth straight month of contraction and the sharpest pace since January 2024, underscoring persistent weakness in consumer demand. On a seasonally adjusted monthly basis, household expenditure rose 0.5%, reversing a 6.4% decline in June and missing forecasts for a 2.6% increase.