TOKYO (MNI) – Japan’s average household spending rose a modest 0.5%
from a year earlier to Y276,494 in June, as higher spending on home
repairs, overseas holiday tours and electronics offset lower medical,
rail transport and mobile carrier costs, data from the Ministry of
Internal Affairs and Communications showed Friday.
It was the first year-on-year rise in three months in inflation
adjusted terms, The June figure also came in stronger than the consensus
call for -0.3%. In nominal terms, spending fell 0.3% y/y as deflation
in retail prices continued.
The real rise in June followed the declines of 0.7% in both May and
in April, and a 4.4% jump in March (when there were rush purchases of
consumer electronics), the latter being the largest y/y gain since +5.0%
in May 2004. The May 2009 rise (+0.3%) was the first y/y gain in real
terms in 16 months.
Real spending rose in five out of the 10 categories in June:
housing (+8.9% y/y), culture and recreation (+8.2%), furniture and
household utensils including air conditioners and refrigerators (+7.7%),
education (+3.0%) and other consumption expenditures (+1.1%).
These gains more than offset lower spending on medical care
(-8.1%), transportation and communication (-4.3%), food (-2.0%),
clothing and footwear (-0.9%) as well as utility charges (-0.3%).
The government’s reward program for buying greener consumer
electronics has continued to prop up demand for certain models of TVs,
refrigerators and air conditioners/heaters.
The average real income of salaried workers’ households rose 5.6%
y/y in June to Y733,886, posting the first y/y rise in two months. It
rose a nominal 4.8% in June.
Real disposable income in the average salaried workers’ household
rose 7.4% in June to Y599,669, also up for the first time in two months.
It rose 6.5% in nominal terms in June.
tokyo@marketnews.com
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