Japan Dec Household Spending Up Unexpectedly On Cold Weather

— Japan Dec Spending +0.5% Y/Y; MNI Forecast -0.1%
— Japan Dec Household Spending Posts 1st Y/Y Rise in 10 Mths

TOKYO (MNI) – Japan’s average household spending unexpectedly rose
in December thanks largely to cold weather, which boosted demand for
winter clothing, the Ministry of Internal Affairs and Communications
showed Tuesday.

Household spending stood at a real Y327,949 in December, up 0.5%
from a year earlier, marking the first year-on-year rise in 10 months.

The December reading was much better than the median forecast of a
0.1% dip in a Market News International survey of economists.

In December, outlays on clothing and footwear rose 7.6% in real
terms while spending on housing (repair, maintenance and rents)
increased 7.0%.

In nominal terms, household spending rose 0.3% y/y in December.

The average real income of salaried workers’ households was
unchanged from a year earlier in December at Y893,427, following a
fourth straight y/y drop.

Real disposable income in the average salaried workers’ household
fell 1.0% in December from a year before to Y749,449, the fifth
consecutive y/y drop.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835 **

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