— Japan Real Household Spending Posts Biggest Fall Since Feb 2009
TOKYO (MNI) – Japan’s average household spending fell 3.3% in
December from a year earlier to Y327,006, the third consecutive y/y drop
after falling 0.4% in November, as purchases of cars, cigarettes and
clothing tumbled, data from the Ministry of Internal Affairs and
Communications showed Friday
The December figure came in weaker than the median forecast for a
0.6% drop in an MNI survey of economists, and marked the biggest y/y
fall since February 2009, when spending dropped a real 3.5%.
In nominal terms, spending fell 3.2% in December following a -0.2%
y/y in November.
In December, real spending fell in seven out of the 10 categories:
food (-1.2% y/y), utility charges (-1.6%), clothing and footwear
(-11.3%), transportation and communication including automobiles
(-11.0%), education (-7.4%), culture and recreation (-3.0%) and other
expenditures (-3.9%).
These losses were partly offset by higher spending on home
maintenance and rents (+10.8%), furniture and household utensils
including refrigerators and air conditioners (+5.3%) and medical
services (+0.3%).
The government ended its subsidy program for buying
energy-efficient vehicles in early September but will continue to waive
taxes or apply lower tax rates for buying and owning low-emission cars
and trucks.
It also raised tobacco tax on Oct. 1, dampening demand for
cigarettes.
The average real income of salaried workers’ households fell 1.4%
from a year earlier in December to Y895,511, the first fall in five
months, following the 0.5% rise in November. Nominal income fell 1.3% in
December following the 0.7% gain in November.
Real disposable income in the average salaried workers’ household
fell 1.4% in December from a year before to Y758,719, also the first
fall in five months, following +0.5% in November. It fell 1.3% in
nominal terms in December following +0.7% in November
tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835 **
[TOPICS: M$J$$$,M$A$$$,MAJDS$,MT$$$$]