— Japan Feb Household Spending Real -0.2% Y/Y Vs Jan -1.0%
— Japan Feb Household Spending MNI Survey Median Forecast Unchanged

TOKYO (MNI) – Japan’s average household spending fell a real 0.2%
in February from a year earlier to Y260,793, the fifth consecutive y/y
drop, as the unwinding of stimulus measures weighed on purchases of
cars, offsetting higher costs of property insurance and rents, data from
the Ministry of Internal Affairs and Communications showed on Tuesday.

The fall in February followed declines of 1.0% in January, 3.3% in
December, 0.4% in November and 0.4% in October. It was unchanged in
September.

The February figure came in weaker than the median forecast for
being unchanged in an MNI survey of economists.

In nominal terms, spending dipped 0.1% in February following a
-0.9% y/y in January.

In February, real spending fell in six out of the 10 categories:
food (-0.2% y/y), clothing and footwear (-6.7%), transportation and
communication including automobiles (-3.0%), education (-1.5%), culture
and recreation including holiday tours (-0.8%) and other expenditures
including those on cigarettes (-2.2%).

In February, 1.4 TV sets were bought per 100 households, down from
1.7 in January, 2.3 in December and 7.8 in November while 0.3 air
conditioners/heaters were bought per 100 households, compared to 0.3 in
January, 0.6 in December and 0.8 in November, ministry data showed.

On Dec. 1, the government halved reward points it pays for buying
greener TVs, air conditioners/heaters and refrigerators after ending its
subsidy program for buying energy-efficient vehicles in early September.

It also raised tobacco tax on Oct. 1, dampening demand for
cigarettes.

The average real income of salaried workers’ households rose 1.0%
from a year earlier in February to Y470,071, the first rise in three
months, following the 3.5% fall in January. Nominal income rose 1.1% in
February following the 3.4% drop in January.

Real disposable income in the average salaried workers’ household
rose 1.4% in February from a year before to Y396,810, also the first
rise in three months, following -3.4% in January. It rose 1.5% in
nominal terms in January following -3.3% in January.

tokyo@marketnews.com
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