Household spending in Japan rose 4.7 % in May from a year earlier, far above the 1.2 % forecast and the fastest increase since August 2022. On a season-adjusted basis, spending also jumped 4.6 % from April. Bigger outlays on car-related items and eating out drove the gain, hinting that consumer demand is picking up after a slow spell. Higher wages and easing inflation could keep this recovery going, though worries about global trade disputes still hang over the outlook.
The Japanese yen (JPY) is leading the currency board today: USDJPY has slipped 0.40 % to 144.400, making the yen the strongest performer so far in intraday trade. Strong spending data has strengthened bets that the Bank of Japan may lift rates again, while the U.S. dollar is under mild pressure from fiscal concerns and talk of future Fed rate cuts. This policy gap is weighing on USDJPY, though ongoing trade risks could limit how much further the pair falls.
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