Japan Faces Economic Downturn as Household Spending Plummets

Despite a stock market rally, Japan's economy struggles with declining consumer spending and stagnant wages.

Household spending in Japan saw its largest drop in 35 months in January, falling by 6.3% year-on-year.
This marks the 11th consecutive month of declines in consumer spending.
Wage growth has failed to keep pace with inflation for nearly two years, exacerbating the economic downturn.
Government officials attribute the spending drop to one-off factors, but broader consumption trends remain concerning.
Economists are hopeful for a recovery, with expectations of wage increases and easing inflation pressures.