Japan Household Spending Down: Ideas Later.

Japan Jan. household spending down 1.0% on year on lower education outlays

Article source: https://mainichi.jp/english/articles/20260310/p2g/00m/0bu/010000c

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TOKYO (Kyodo) -- Japan's household spending in January fell a real 1.0 percent from a year earlier, marking the second consecutive monthly decline, due partly to lower outlays for education and communication services, government data showed Tuesday.

Households of two or more people spent an average of 307,584 yen ($1,950) in the reporting month, the Ministry of Internal Affairs and Communications said.

By category, spending on education sank 22.6 percent, marking the first decline in four months, dragged down by falling tuition fees for private universities, while outlays for transportation and communication dropped 1.0 percent, due partly to a continuing rise in consumers switching to cheaper mobile phone plans.

Utility bills dropped 2.6 percent as higher temperatures in December than a year earlier led to lower heating costs in January electricity bills, a ministry official said.

Housing expenditures also fell 12.3 percent, marking the seventh consecutive decline, weighed down by lower repairs and maintenance work as well as rents. Payments for exterior work and fencing decreased from the previous year, the official said.

In contrast, spending on food, which makes up around 30 percent of household expenditures, grew 1.5 percent on increased outlays for dining out and fruit such as mandarin oranges and strawberries, which saw a rebound in demand after poor crops last year.

Furniture and home appliance expenditures rose 13.5 percent, helped by spending on durable items including air conditioners and washing machines.

Outlays on entertainment also increased 10.8 percent, partly due to consumers buying televisions to watch the Milan Cortina Olympics and Paralympics, the official said.

The spending data is a key indicator of private consumption, which accounts for more than half of Japan's gross domestic product.

The average monthly income of salaried households with at least two individuals increased a real, or inflation-adjusted, 1.3 percent to 530,520 yen, according to the ministry.