Japan’s Household Spending Down for 2nd Month in Row

May 8, 2018

Tokyo- Japanese household spending fell 0.7 pct in March from a year before on average in price-adjusted real terms, down for the second straight month, government data showed Tuesday.

The result marked the first consecutive declines since a 15-month losing streak was recorded through May last year, the internal affairs ministry said.

March's decline reflected many temporary factors, including lower home renovation costs, a ministry official said.

The ministry maintained its basic assessment of household spending, saying that its moves toward recovery have stalled.

Spending by households comprising two or more members averaged 301,230 yen in March.

By category, spending on housing plunged 18.1 pct after home renovation expenditures surged a year before thanks to public subsidies.

Education- and recreation-related spending was down 3.2 pct because of sluggish demand for overseas package tours.

Expenditures on transportation and communications grew thanks to growth in vehicle purchases. Health and medical expenditures rose due to increased consumption of drugs for hay fever.

The average income at wage-earning households dropped 3.8 pct to 453,676 yen in real terms, reflecting a fall in both household heads and their spouses. March's income drop was the largest since a 3.9 pct decline in November 2014.

The consumption trend index, including spending by single-member households, declined 1.6 pct to 103.1 in real terms against 100 for the base year of 2015. Jiji Press