Japan Household Spending in July: Ideas later.

Japan's household spending in July drops 3.6% on year

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TOKYO (Kyodo) -- Japan's household spending in July fell a real 3.6 percent from a year earlier, marking the eighth consecutive monthly drop, partly due to lower temperatures and rising prices, government data showed Friday.

Households of two or more people spent an average of 301,245 yen ($1,930), and spending fell by the sharpest rate since January 2024, when it fell by 6.3 percent, the Ministry of Internal Affairs and Communications said.

By category, spending on food and beverages dropped 1.3 percent amid inflation, while lower temperatures compared with the previous year also pushed down demand for beverages.

Consumers sought less expensive prepared food, reflecting a "trend towards tighter spending," said a ministry official.

Outlays for energy and water bills fell by 9.2 percent in July. The decline is likely due to less use of air conditioning, as temperatures in the month were also lower than a year ago, according to an official.

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

The average monthly income of salaried households of at least two individuals decreased a real, or inflation-adjusted, 3.8 percent to 689,476 yen, according to the ministry.

Article source:  https://mainichi.jp/english/articles/20260904/p2g/00m/0bu/010000c