Japan Household Spending Down 3.6 Pct in July

Tokyo, Sept. 4 (Jiji Press)–Spending by households in Japan declined 3.6 pct in July from a year before in inflation-adjusted real terms as they spent less on electricity and gas as well as food, the internal affairs ministry said Friday. Consumption expenditures by households with two or more members averaged 301,245 yen, marking their eighth consecutive month of decrease. Food spending was down 1.3 pct, the second straight month of decrease. Higher prices prompted consumers to opt for less expensive items or forgo purchases. Spending on tea and sports drinks also fell. Electricity bills dropped 12 pct as cooler temperatures reduced air conditioner use. Gas bills slipped 7.2 pct. Automobile-related expenditures fell 10.4 pct due to weaker vehicle purchases. Spending on communications declined 5.6 pct as more consumers switched to lower-cost mobile phone plans. Spending on education and entertainment rose 4.8 pct, supported by higher accommodation expenses and increased purchases of video game software. Expenditures on household durable goods climbed 5.9 pct, driven by continued last-minute demand for air conditioners ahead of stricter energy-saving standards to be introduced in April next year. END [Copyright The Jiji Press, Ltd.]