ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Economy

Japan household spending up 0.8% in July as bad weather takes toll

Government insists consumption is 'picking up' driven by health care outlays

TOKYO (Kyodo) -- Japan's household spending increased for the eighth consecutive month in July, but at a slower pace due to bad summer weather, government data showed Friday.

Spending by households with two or more people edged up 0.8 percent in real terms from a year earlier to 288,026 yen ($2,700) in the reporting month, according to the Ministry of Internal Affairs and Communications.

A ministry official said household spending remains solid despite the bad weather in the reporting month, including a prolonged rainy season and lower than usual temperatures. The ministry maintained its assessment, saying spending is "picking up."

Healthcare expenditure was one of the biggest contributors to the overall rise as there were more hospital operating days than usual. Remedies for headaches sold well because of the bad weather, according to the official.

Outlays for transportation remained solid reflecting solid travel demand for the summer.

Meanwhile, sales of summer items, including clothing and air conditioners, were poor because of the cool temperatures.

As for the planned consumption tax hike to 10 percent from 8 percent on Oct. 1, the official said there was no clear sign of a rush to buy ahead of the tax hike.

Household spending is a key indicator of private consumption, which accounts for more than half of gross domestic product in the world's third-largest economy.

After adjusting for inflation, the average monthly income of salaried households with at least two people was up 1.1 percent from a year earlier to 626,488 yen.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media