TOKYO (MNI) – Japan’s average household spending fell 0.7% from a
year earlier to Y280,714 in May, as spending on furniture and household
utensils, education, clothing and footwear, and medical care decreased,
data from the Ministry of Internal Affairs and Communications showed
Tuesday.
It was the second consecutive year-on-year drop in inflation
adjusted terms and the fourth in the last 12 months. The May figure also
came in much weaker than the consensus call for +0.3%.
The drop in May followed a decline of 0.7% in April and a 4.4% rise
in March, the latter being the largest y/y gain since +5.0% in May 2004.
The May 2009 rise (+0.3%) was the first y/y gain in real terms in 16
months.
Real spending fell in seven out of the 10 categories in May:
furniture and household utensils (-9.3%), education (-7.6%), other
consumption expenditures (-4.7%), clothing and footwear (-2.7%), medical
care (-2.4%), food (-1.8%) and housing (-1.1%).
These losses more than offset higher spending on transportation and
communication (+7.7%) culture and recreation (+5.3%) and heating fuel,
electricity and water charges (+4.7%).
Tax breaks for buying low-emission vehicles have supported demand
for automobiles, and car purchases in May posted the first year-on-year
rise in two months.
In March the transportation and communication category, including
automobiles, was up 13.2% on the year.
The government’s reward program for buying greener consumer
electronics has continued to prop up demand for certain models of TVs,
refrigerators and air conditioners/heaters.
The average real income of salaried workers’ households fell 2.4%
y/y in May to Y421,6413, posting the first y/y drop in four months.
It fell a nominal 3.4% in May.
Real disposable income in the average salaried workers’ household
fell 5.3% in May to Y320,542, also down for the first time in four
months. It fell 6.2% in nominal terms in May.
tokyo@marketnews.com
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