Japan Household Spending Down 0.4 Pct in May

Tokyo, July 7 (Jiji Press)–Household spending in Japan dipped 0.4 pct in May from a year earlier in inflation-adjusted real terms, falling for the sixth consecutive month, the internal affairs ministry said Tuesday. The decline was mainly attributed to falls in spending on electricity and gas, as well as automobile purchases, despite increased spending on food and consumer durables. The average spending by households with two or more members stood at 320,345 yen. Electricity and gas bills dropped 7.7 pct and 9.1 pct, respectively, reflecting higher temperatures than a year before. Automobile-related spending slumped 21.6 pct after jumping 19.3 pct the previous month amid replacement demand following the abolishment of environmental performance-linked taxes. Spending on education and entertainment fell 3.1 pct, due partly to a fall in domestic and overseas package tour purchases. Meanwhile, food spending climbed 2.4 pct, the first increase in four months. However, rice purchases dropped 6.0 pct, down for the seventh straight month. Spending on furniture and household goods jumped 23 pct, while spending on household durables, including air conditioners, soared 51.8 pct. Spending on household expendable supplies rose 8.5 pct, as people continued to stockpile plastic bags and wraps due to supply concerns stemming from tensions in the Middle East. END [Copyright The Jiji Press, Ltd.]