The rally in Japanese equities since the beginning of the year might be taken as a sign that the Japanese economy is in good shape.

But that’s actually not really the case.

Household spending in January saw its biggest year-on-year drop in 35 months — 6.3% — according to internal affairs ministry data released Friday, with this being the 11th straight month of declines. Meanwhile, the pace of wage hikes has been unable to keep up with inflation for nearly two years.