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Japan household spending down 3.5% in February

According to data released today by the Ministry of Internal Affairs and Communications, household spending in Japan fell 3.5% in February on a year-on-year basis. February is thus the twelfth consecutive month in which household spending figures have fallen when measured against those of a a year ago.

Average spending at households with two or more persons came to 266,044 yen, down 3.5% from a year ago, while spending at those households with a worker as head of household fell 1.0% to 295,494 yen. Wages at workers’ households fell 2.4% to 464,665 yen.

In terms of spending at households with two or more persons, here’s a breakdown by category: Read more

Japan November household spending down 0.5% as spending on services stays in the red

According to data released yesterday by the Ministry of Internal Affairs and Communications, Japan’s household spending fell 0.5% in November on a year-on-year basis. November is thus the ninth consecutive month in which household spending has declined.

Average spending at households with two or more persons came to 284,762 yen, down 0.5% from a year ago, while spending at those households with a worker as head of household increased 1.2% to 310,146 yen. Wages at workers’ households fell 0.3% to 439,394 yen.

In terms of spending at households with two or more persons, here’s a breakdown by category:

• Transportation & communication: 37,935 yen (+11.0%)
• Culture & recreation: 30,290 yen (+4.3%)
• Clothing & footwear: 15,547 yen (+1.3%)
• Food: 68,510 yen (+0.5%)
• Housing: 16,992 yen (+0.1%)

• Furniture & Household Goods: 10,136 yen (-1.1%)
• Medical care: 13,544 yen (-2.2%)
• Fuel, electric and water: 20,302 yen (-4.3%)
• Other: 63,002 yen (-7.1%)
• Education: 9,506 yen (-8.7%)

In October, only education spending had shown an increase; in November half of the categories increased while half declined, just as they had in September. While transportation, communication and recreation spending contributed most heavily to the increase in household spending, the source of downward pressure on household spending figures is more difficult to pinpoint, as it lies primarily in the vague “other” category.

To get a better look at where the downward pressure on household spending lies, here’s our table tracking the past year of spending on goods and services:

	Goods and Services	Goods Only	Durable & Semi Durable Goods	Services Only
December 2007	+2.34%	+0.99%	+.97%	+4.20%
January 2008	+4.39%	+2.98%	+8.09%	+6.40%
February	+1.30%	+4.76%	-3.65%	-3.28%
March	-0.90%	-0.51%	-10.41%	-1.43%
April	-1.16%	-0.10%	-6.56%	-2.35%
May	-1.94%	+2.68%	+8.26%	-7.64%
June	+1.08%	+1.31%	-1.92%	+0.75%
July	+0.20%	+0.56%	+2.25%	-0.29%
August	+1.01%	+0.03%	+3.01%	-5.87%
September	+1.51%	+1.23%	+1.54%	+1.89%
October	-0.07%	+1.62%	+5.27%	-2.14%
November	+2.11%	+4.58%	+13.31%	-1.14%

In November, spending on goods and services totaled 251,790 yen. Spending on goods was at 146,570 yen, with durables and semi-durables consisting of 41,836 yen of spending on goods. Meanwhile, total spending on services was at 105,220 yen.

When goods and services spending (251,790 yen) is subtracted from the total figure (284,762 yen), we have a leftover 32,972 yen, which does not correspond to any of the categories listed and remains unexplained on the ministry’s excel sheets. There is a figure labeled “miscellaneous” which lists 21,044 in spending above the total household spending figure. At any rate, subtracting spending on goods and services from total household spending in November 2007 leaves us with a gap of 36,260 yen. Thus, while the drop in spending on services may not seem strong enough to put heavy downward pressure on household spending, it appears to be supported by a 9.07% drop in the mysterious “gap” of spending that lies outside of spending on goods and services, yet is still part of household spending - though apparently unspecified in the data.

Japan’s household spending down 3.8% in October, decline in services spending drags figures down

According to data released last Friday by the Ministry of Internal Affairs and Communications, Japan’s household spending dropped 3.8％ in October when compared to the same month a year ago. October was the eighth consecutive month in which household spending has fallen.

Average spending at households with two or more persons came to 291,504 yen, down 3.8% from a year ago, while spending at households with a worker as head of household fell 6.0% to 313,544 yen. Wages at workers’ households fell 0.4% to 481,746.

In terms of spending at households with two or more persons, here’s a breakdown by category: Read more

Japan household spending down 2.4% in September; Spending on services back in the black

In August, Japan’s household spending fell by a steep 4.0% against a year earlier. As those figures were driven down in part to inclement weather, we did not expect to see September’s numbers show such a large reduction from the previous year. According to data released late last week by the Ministry of Internal Affairs and Communications, household spending fell 2.3% in September. Thus, September was the seventh consecutive month in which household spending dropped on a year-on-year basis.

Average spending at households with two or more persons came to 281,433 yen, down 2.4% from a year ago, while spending at households with a worker as head of household fell 3.4% to 307,778 yen. Meanwhile, after wages at workers’ households rose 1.9% to 488,216 yen in August, they fell back 2.0% to 433,502 yen in September.

In terms of spending at households with two or more persons, here’s a breakdown by category: Read more

Japan household spending down 4.0% in August; spending on services hit hard

Given the torrential rains over the last ten days of August, I expected household spending to fall much further than the 0.5% slide we saw in July. Forecasts had called for something along the lines of a 1.3% reduction in household spending in August, and since forecasts have generally been below the dip in spending so far this year, it seemed safe to expect a 1.5%-2.0% fall in August.

However, data released today by the Ministry of Internal Affiars and Communications shows a 4.0% fall in Japan’s August consumer spending. This makes August the sixth month in a row that household spending has fallen in Japan.

Average spending at households with two or more persons came to 291,154 yen, down 4.0% from a year ago, while spending at households with a worker as head of household fell 1.9% to 322,501 yen. The only nugget of good news in the report was that wages at workers’ households rose 1.9% to 488,216 yen in August.

In terms of spending at households with two or more persons, here’s a breakdown by category: Read more

Nikkei on the upcoming Economy Watchers Survey and government stimulus

A bit of an odd article came out of the Nikkei this morning, with the title Rise In Econ Watchers Confidence Could Boost Stocks. The Economy Watchers Survey is released each month by the Cabinet Office, and gauges sentiment amongst service industry workers close to the “front line” in various sectors. The survey itself has taken a beating this year, and last month slid for the fourth month in a row to its lowest levels since late 2001.

Because the EWS is an index and is not measured year-on-year, there are bound to be occasional surprising results, such as when the survey reported a slight uptick in March of this year. Still, the main score has been below the boom-or-bust level of 50 for 15 consecutive months, and with a score of 29.5 registered in June, it’s difficult to imagine anything too much higher than 30 showing up in the July reading.

Speaking of the July reading, it’s not due to be published for another five days, so why the speculation? Here’s what the Nikkei had to say:

The Economy Watchers Survey for August may serve to lift stocks if the latest data, to be published Monday, shows an improvement in the diffusion index for economic conditions.

Perhaps, though many other factors would be at work, and this doesn’t show slam-dunk causality. But what if the survey shows a decline yet again?

But if the gauge marks the fifth consecutive month of decline, calls for government action to stimulate the economy will likely mount.

Ahh. That might be the real message. The last week of August was washed out with rain, which most likely dissuaded consumers from doing a lot of shopping - and 25% of Japan’s department store sales happen in the Tokyo area. Although household spending fell by just 0.5% in July, this July was fighting against one of the stronger months from 2007. Given that the Economy Watchers survey is done from the 25th to the end of each month, right in the middle of all that rain, I don’t see sunshine coming from next week’s figures.

And yes, I’m buying the weather excuse this time.

Japan household spending down 0.5% in July; durables up, services down

According to the Ministry of Internal Affairs and Communications, Japan’s average household spending fell by 0.5% in July. Once again, the drop was smaller than had been generally forecasted. However, it does represent the fifth consecutive month in which household spending has fallen year-on-year.

Average spending at households with two or more persons came to 298,366 yen, down 0.5% from a year ago, while spending at households with a worker as head of household fell 0.1% to 330,483 yen. At the same time, wages at workers’ households fell 3.5% to 587,732 yen in July.

In terms of spending at households with two or more persons, here’s a breakdown by category: Read more

Japan household spending down 1.8% in June; Spending on durables in negative territory

According to the Ministry of Internal Affairs and Communications, Japan’s household spending fell by 1.8% in June. Although the drop was smaller than had been generally forecasted, it does represent the fourth consecutive month in which household spending has fallen year-on-year.

In May we saw a fall of 3.2% after a drop of 2.2% in April and 1.6% in March. The Ministry also tells us that average household income declined 2.1% against June of 2007, falling to 737,166 yen. June income seems high when compared to other months due to the summer bonus being received in June. This year saw the average bonus falling for the first time in six years, though the decline was only 0.08%. A separate report from the Ministry of Health, Labor and Welfare showed overall wages falling 0.6% in June.

Here’s a breakdown of spending per category, along with changes against June of last year: Read more

Gift certificates, gas coupons, expensive school lunches and reduced houshold spending

A few stories concerning consumer spending and behavior caught my eye today. First, the Japan Times tells us that an increasing number of shoppers are buying discount gift certificates for themselves, in order to cut down on food and clothing costs. According to the paper, gift certificates can be usually be bought for as much as a 2% discount on their face value, though department store gift certificates are selling at shops in Shimbashi for as much as a 5% discount.

Then, we hear from the Nikkei that supermarket giant Ito Yokado plans to hand out gasoline coupons starting tomorrow. The campaign will last until next Monday, and each shopper who spends over 5,000 yen will receive a coupon good for 10 yen off per liter of gas, up to 50 liters. Each customer is limited to two coupons. Read more

Japan’s household spending down 3.2% in May - Spending on services slid 7.64%

Prior to the release of May’s household spending figures, a Kyodo News survey forecasted a 2.2% fall in spending. The results, however, were worse than expected: According to data released Friday by the Ministry of Internal Affairs and Communication, Japan’s household spending fell 3.2% in May.

May was thus the third consecutive month with a fall in consumer spending, following April’s 2.2% decline and a drop of 1.6% in March. According to the Statistics Bureau, spending at households with two or more people came to 288,128, down 3.2% from a year ago. Income at households with a salaried worker as head of household came to 435,076 yen, which was down 0.6% from a year ago, while spending at workers’ households was at 315,152 yen, down 0.9% from last year.

Here’s a breakdown of spending per category, along with changes against May of last year: Read more

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