Japan's Household Spending Advanced Fourth Consecutive Month

Akira Ito
07 Oct, 2025
Tokyo

Stock market indexes in Tokyo traded at new record highs amid optimism about a fiscal policy shift and the continuation of ultra-loose monetary policy. 

The Nikkei 225 Stock Average increased 0.7%, the broader Topix increased 0.3%, and the yen hovered near a recent low of 150.43 against the U.S. dollar. 

The newly elected LDP leader, Sanei Takaichi, is expected to urge the Bank of Japan to maintain its ultra-loose monetary stance, driving the yen down 2% in two days. 

 

Japan's Household Spending and Income Advanced In August

Japan's household income and spending adjusted for inflation increased in August, according to a monthly report released by the Ministry of Internal Affairs and Communication. 

Spending by households of two or more rose by a real 2.3% from a year ago to 313,977 yen, or $2,100, in August, and increased for the fourth consecutive month. 

Spending on transportation and communications increased 13.5%, culture and recreation rose 12.2%, energy and water advanced 4.7%, and food decreased 1.2%. 

Spending on food accounts for 30% of total household spending, and food spending headed lower partly because people stepped up emergency food stockpiling a year ago due to an earthquake advisory. 

Household income fortwo or more salaried individuals, adjusted for inflation, increased 2.8% from a year ago to 608,578 yen, according to the ministry.  

 

Japan Indexes and Stocks  

The Nikkei 225 Stock Average rose 0.7% to 48,264.98, and the broader Topix edged up 0.3% to 3,235.13.  

Technology stocks continued to advance after OpenAI struck a supply deal for advanced chips with AMD and acquired an option to take up to a 10% stake in the chipmaker.

Tokyo Electron rose 0.2% to ¥30,640.0, Advantest Corp. gained 2.7% to ¥18,375.0, and Disco Corp. decreased 1.4% to ¥53,180.0.