Japanese consumer demand showed unexpected strength in May, with real household spending rising 4.7% from a year earlier, the biggest jump since August 2022 and well above the 1.2% consensus forecast. The Ministry of Internal Affairs and Communications said the average outlay for two-or-more-person households reached ¥316,085, lifted by higher car purchases and stronger out-of-home dining. Spending also rose 4.6% from April, marking a return to growth after a one-month setback and offering support to an economy contending with sticky inflation and higher U.S. tariffs. Robust consumption was echoed in Australia, where household spending climbed 4.2% on the year and 0.9% on the month in May, exceeding market expectations. The Australian Bureau of Statistics highlighted broad-based gains across services, suggesting domestic demand remains resilient despite elevated borrowing costs. In contrast, Europe’s latest manufacturing readings underscored persistent weakness. German factory orders fell 1.4% in May from April, well below the 0.2% decline economists anticipated, although orders were still 5.3% higher than a year earlier. France reported a 0.5% monthly drop in industrial production, reversing part of April’s rebound and missing forecasts for a modest increase. The figures point to a tentative divide between firm consumer activity in parts of Asia-Pacific and a sluggish industrial recovery in the euro area.