TOKYO - Japan's household spending fell for the fifth consecutive month in April, highlighting continued pressure on consumers as rising prices and growing concerns over instability in the Middle East weighed on household budgets.
According to the Ministry of Internal Affairs and Communications' Family Income and Expenditure Survey released on June 6th, households with two or more people spent an average of 328,969 yen in April, down 0.5% in real terms from a year earlier after adjusting for inflation.
The decline extended a negative streak that began late last year, as many households continued to curb spending in response to higher living costs.
Food spending fell 0.6% from a year earlier. Within that category, spending on cereals, including rice products, dropped 4.8%, while spending on vegetables and seaweed declined 2.7%, partly reflecting reduced purchases as prices for items such as potatoes and onions remained elevated.
Utility costs also contributed to the decline in overall spending. Electricity expenditures fell 11.0% from a year earlier as warmer-than-usual weather reduced the need for heating.
In contrast, some categories posted strong gains. Automobile purchases surged 109.8% after the abolition in March of an automobile tax that had been linked to vehicle environmental performance.
The survey also suggested that deteriorating conditions in the Middle East are beginning to influence consumer behavior. Purchases of petroleum-based products increased, with spending on plastic bags and food wrap rising 42.7% and toilet paper increasing 6.1%.
Housing-related expenditures also climbed, with spending on equipment repairs and maintenance rising 17.9% as purchases of system kitchens, bathroom vanities, and other home improvement products increased.
The ministry said it would continue to closely monitor the impact of worsening Middle East tensions on household finances, as concerns grow that higher energy and raw material costs could place additional strain on consumers in the months ahead.
Source: TBS
