Household spending in Japan fell by 0.1% year-over-year in April 2025, reversing the 2.1% increase recorded in March and falling short of market expectations for a 1.4% gain. This marks the second year-on-year decline in spending so far this year. The contraction was driven by reduced expenditures in several key categories, including medical care (-4.4%), clothing and footwear (-2.1%), fuel, light and water charges (-1.2%), and furniture and household utensils (-0.4%). In contrast, spending rose in areas such as housing (+10.9%), culture and recreation (+7.9%), education (+5.1%), transportation and communication (+2.4%), and food (+0.3%). On a monthly basis, household spending dropped 1.8% in April, following a 0.4% gain in March. This decline was steeper than the anticipated 0.8% fall, further highlighting ongoing weakness in consumer demand.