Japan Household Spending Down 1.3 Pct in April

June 5, 2018

Tokyo- Household consumption spending in Japan in April fell 1.3 pct from a year before in price-adjusted real terms, marking its third consecutive month of decrease, the internal affairs ministry said Tuesday.

Spending by households with two or more members averaged 294,439 yen.

The decline mainly reflected a 12.1 pct drop in social expenses, including expenditures for congratulatory gifts for entering school and getting employment.

The ministry downgraded its view of household spending, saying weakness can be seen. Previously, it said moves toward recovery had stalled.

Spending on utilities fell 5.6 pct as heating costs dropped due to higher temperatures than usual. Education and entertainment spending dropped 3.8 pct.

The average income at wage-earning households dropped 0.2 pct to 495,370 yen in real terms.

Spouses' income rose, but income by household heads fell amid an increased number of low-income elderly people and reduced work hours.

The consumption trend index, which covers spending by single-member households as well, fell 0.8 point to 99.8 in real terms against 100 for the base year of 2015. Jiji Press