Japan Household Spending Up 4.7% and Australia Reports 4.2% Increase with Rising Business and Consumer Confidence

Japan's household spending rose by 4.7% year-on-year in May 2025, surpassing expectations of 1.2% and marking the fastest pace in nearly three years. This increase follows a prior decline of 0.1%. Meanwhile, Australia reported a 4.2% year-on-year increase in household spending for May, exceeding the forecast of 3.5% and the previous 3.7%. On a month-on-month basis, Australian household spending grew by 0.9%, above the expected 0.5% and prior 0.1%. Business sentiment in Australia also improved, with the National Australia Bank (NAB) business conditions index rising to 9 in June from 0 the previous month, and business confidence increasing to 5 from 2. Additionally, Australia's Westpac consumer confidence index rose by 0.6% month-on-month in July to 93.1, up from 92.6. Consumer inflation expectations in Australia decreased to 4.7% in July from 5.0% in June.