— Japan July Household Spending +1.7% Y/Y; MNI Forecast +0.8%
— Japan July Household Spending Posts 6th Straight Y/Y Rise
TOKYO (MNI) – Japan’s average household spending in July marked a
sixth straight year-on-year rise, thanks to lingering effects of
government subsidies for buying low-emission vehicles, data from the
Ministry of Internal Affairs and Communications showed Friday.
Household spending stood at Y283,295 in July, up a real 1.7% from a
year earlier following a 1.6% rise in June.
The July reading was better than the median forecast for a 0.8%
increase in a MNI survey of economists.
Spending has rebounded from depressed consumption seen a year
before, when the massive earthquake and nuclear meltdown in March 2011
jolted the already slowing economy.
In July, spending on transportation and communication, which
includes automobile purchases, rose 18.7% on the year, pushing up
overall household spending by 2.38 percentage points.
Higher spending on cars, home maintenance and mobile commutations
was partly offset by a continued decline in purchases of TVs.
In nominal terms, household spending increased 1.2% in July
following a 1.5% rise in June.
The average real income of salaried workers’ households fell 2.2%
to Y557,032 in July, the first fall in eight months.
Real disposable income in the average salaried workers’ household
tumbled 4.0% in June, the first fall in two months, following a 3.7%
rise in the previous month.
tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-6860-4821 **
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