Japan’s household spending falls 3.1 per cent after price adjustment
Japanese households with at least two people spent 3.1 per cent less in real terms in August than a year earlier. The annual decline eased from July but continued for a ninth month. Workers’ household income rose in nominal terms and fell after price adjustment, while their consumption declined more sharply than spending across the wider household group.
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The annual spending decline continues for a ninth month
Japanese households with at least two people reduced their real consumption spending by 3.1 per cent in August from a year earlier. The annual decline eased from July’s 3.6 per cent but continued for a ninth month.[1], [2]
Japan’s Statistics Bureau, the national statistical agency, released the survey on October 9. Average monthly consumption was 310,975 yen, a nominal annual decline of 1.0 per cent. The larger real decline removes price changes. The survey’s wider household group includes business proprietors, professionals and households without employed members, alongside workers’ households.[1]
Workers’ income rises before price adjustment
Workers’ households had average monthly income of 616,704 yen. Income increased 1.3 per cent in nominal terms but fell 0.9 per cent after price adjustment. Disposable income was 513,617 yen and consumption 331,134 yen. Consumption accounted for 64.5 per cent of disposable income. These households’ spending fell 4.7 per cent nominally and 6.8 per cent in real terms from a year earlier.[1]
Food and housing spending fall in real terms
Across the wider household group, monthly food spending was 104,220 yen, down 1.4 per cent in real terms annually. Housing spending of 18,267 yen fell 5.8 per cent after price adjustment. Fuel, electricity and water expenditure was 19,835 yen, with a real decline of 5.2 per cent. Transport and communication spending reached 43,647 yen and rose 0.2 per cent in real terms.[1]
