Japan Household Spending Falls for Seventh Consecutive Month

Dragon Media News Desk

Japan’s household spending fell 3.3 percent in inflation-adjusted real terms in June from a year earlier, marking the seventh consecutive monthly decline, according to government data released on Friday.

The Ministry of Internal Affairs and Communications said unfavorable weather conditions, including typhoons, heavy rainfall and relatively lower temperatures, contributed to the decline in consumer spending.

Households with two or more members spent an average of 290,886 yen, or around 1,840 U.S. dollars, during the month.

Spending on food and beverages declined 2.5 percent. The ministry said cooler temperatures compared with the previous year contributed to lower sales of tea beverages and sports drinks.

Expenditure on dining out fell 2.9 percent, marking the first decline in three months. A ministry official said typhoons and the rainy season weighed on consumer activity outside the home.

Spending on consumable goods dropped 8 percent, the first decline in four months. The data showed that stockpiling of items such as plastic bags and plastic wrap, which had increased since March amid tensions in the Middle East, had eased by June.

Transportation and communication spending fell 5.7 percent, partly due to lower expenditure on air and rail fares. The ministry said unfavorable weather conditions may also have discouraged consumers from traveling.

Household spending is a key indicator of private consumption in Japan, which accounts for more than half of the country’s gross domestic product.

Meanwhile, the average monthly income of salaried households with at least two members increased 2 percent in real terms to 1,013,986 yen, according to the ministry.