Japan Household Spending Down 1.0 Pct in Jan.

Tokyo, March 10 (Jiji Press)–Japanese household spending in January fell 1.0 pct from a year earlier in inflation-adjusted real terms as entertainment spending plunged, internal affairs ministry data showed Tuesday. The average consumption spending by households with two or more members totaled 307,584 yen. Entertainment spending, including on “otoshidama” traditional New Year’s money gifts to children and coming-of-age celebratory gifts, dropped 14.7 pct, the 10th straight month of decrease. Because entertainment expenses make up a significant part of January’s total spending, the drop pushed down overall household expenditures. Rent expenses skidded 15.0 pct, with all of the private, public and company housing recording declines. Telecommunications expenses dropped 13.1 pct as more consumers opted for lower-priced mobile phone plans amid growing thriftiness. Electricity and gas bills fell 1.8 pct and 3.4 pct, respectively. In contrast, spending on food rose 1.5 pct. Purchases of mandarin oranges and strawberries rebounded after last year’s poor harvest. Rice sales fell 10.2 pct, decreasing for three straight months as the volume of purchases decreased. Expenditures on household durable goods surged 32.6 pct, driven by the strength of air conditioners and washing machines. Durable items related to education and entertainment jumped 48.9 pct due to increased purchases of televisions ahead of the Milan-Cortina Winter Olympics in February. END [Copyright The Jiji Press, Ltd.]