This report presents the quarterly estimates of household disposable income and household saving rate for Q1 2025, published by the Economic and Social Research Institute of the Cabinet Office.
In Q1 2025, household disposable income (seasonally adjusted, annualized) reached 343.4 trillion yen, showing an increase from the previous quarter. Household final consumption expenditure was 330.1 trillion yen, resulting in household savings of 13.4 trillion yen. The household saving rate was 3.7%, down 0.4 percentage points from 4.1% in the previous quarter.
Looking at quarterly trends, household disposable income surged to 342.3 trillion yen in 2020 due to special cash payments and other COVID-19 pandemic measures. After a temporary decline, it has shown a gradual upward trend. Since 2024, the trend has been particularly robust, with Q1 2025 recording 343.4 trillion yen, near the highest level on record.
Regarding the household saving rate, after reaching an abnormally high level of 21.2% in Q2-Q3 2020 due to the impact of special cash payments, it has normalized. Since 2023, it has generally fluctuated between 1% and 5%, with the Q1 2025 rate of 3.7% representing a relatively stable level.
The article indicates that Japan's household sector maintains an appropriate saving rate under a stable income environment, suggesting that the economic situation of households is generally sound.