Japan's consumption (Apr-May 2026): Goods up, svcs down

Research evidence excerpt

Japan's consumption (Apr-May 2026): Goods up, svcs down

5 June 2026

Mizuho Securities Equity Research Economics / Domestic and Overseas Economy

Economic Comment

Family Income & Expenditure Survey, Current Survey of Commerce, ind. stats, POS

Chief Economist: Summary

Shunsuke Kobayashi Consumption statistics for April 2026 showed an increase in spending on

+81 3 6202 8222 goods but a decline in spending on services. Real retail sales in the Current

shunsuke.kobayashi@mizuho-sc.com Survey of Commerce, which indicate goods consumption, rose 1.4% MoM

(seasonally adjusted). Real consumption expenditures in the Family IncomeEconomist:

& Expenditure Survey rose 1.6% MoM, while spending on services fell 4.5%Soichiro Hirose

in the same survey (both seasonally adjusted).+81 3 6202 8293

soichiro.hirose@mizuho-sc.com Spending on goods (Current Survey of Commerce) showed an increase in

Economist: sales value for motor vehicles, machinery & equipment, and fabrics, apparel

Iichi Ogimi & accessories. Of these, we believe systemic factors provided a tailwind

+81 3 6202 8599 for motor vehicles and machinery & equipment. For motor vehicles, sales

iichi.ogimi@mizuho-sc.com value appears to have increased following the 1 April suspension of the

environmental performance tax, which had been levied on automobiles. For

machinery & equipment, demand may have been stronger than usual ahead

of the introduction of stricter energy efficiency standards for air conditioners,

which are slated to take effect in April 2027. For fabrics, apparel & accessories,

sales of summer merchandise may have picked up due to April temperatures

being higher than normal.

For spending on services (Family Income & Expenditure Survey), there was a