— Japan March Household Spending Real -8.5% Y/Y Vs Feb -0.2%
— Japan March Household Spending MNI Survey Median Forecast -6.4%
— Japan Mar Household Spending Posts 6th Straight Y/Y Drop

TOKYO (MNI) – Japan’s average household spending fell a real 8.5%
in March from a year earlier to Y293,181, the sixth consecutive y/y
drop, as the March 11 earthquake dampened consumer confidence and
prospects for the job security, data from the Ministry of Internal
Affairs and Communications showed on Thursday.

The fall in March followed declines of 0.2% in February, 1.0% in
January, 3.3% in December, 0.4% in November and 0.4% in October.

The March figure came in weaker than the median forecast for a
6.4% drop in an MNI survey of economists.

In nominal terms, spending fell 8.4% in March following -0.1% y/y
in February.

In March, real spending fell in nine out of the 10 categories: food
(-1.6% y/y), home maintenance and repairs (-16.5%), utilities (-0.1%),
household goods (-8.3%), clothing and footwear (-15.6%), transportation
and communication including automobiles (-14.4%), education (-8.3%),
culture and recreation including holiday tours (-18.7%) and other
expenditures (-6.7%).

Spending on health care and medical services rose 6.5% on year.

The average real income of salaried workers’ households fell 4.1%
from a year earlier in March to Y421,975, the first fall in two months,
following the 1.0% rise in February. Nominal income fell 4.0% in March
following the 1.1% increase in February.

Real disposable income in the average salaried workers’ household
fell 3.2% in March from a year before to Y351,258, also the first fall
in two months, following +1.4% in February. It fell 3.1% in nominal
terms in March following +1.5% in February.

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

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