Japan's household spending in May 2025 increased by 4.7% year-on-year, marking the fastest growth pace in nearly three years and the first positive increase in two months. This rise was driven by higher expenditures on food, dining out, and automobile purchases. The average spending for households with two or more people was 316,095 yen. Meanwhile, Australian household spending also showed growth, rising 4.2% year-on-year and 0.9% month-on-month in May, exceeding expectations and indicating a recovery in consumer activity. The increase in Japan's household spending comes amid concerns over tariff risks, including the U.S. tariff on Chinese goods implemented earlier in 2025.