FILE PHOTO: A woman uses an ATM machine at a commercial bank, in Tokyo, Japan, June 16, 2026. REUTERS/Kim Kyung-Hoon/File Photo

Japan household spending fell 6.8% year-on-year in September, marking the 10th consecutive month of decline and missing forecasts. The contraction outpaced the median market estimate for a 3.1% drop, delivering the steepest fall since September 2020. This persistent weakness complicates the central bank's rate-hike path.