JP: Household Spending


Thu Jul 28 18:30:00 CDT 2016

Consensus Actual Previous
Year over Year -0.3% -2.2% -1.1%

Highlights
Household spending declined for a fourth consecutive month in June. Spending dropped 2.2 percent on the year and the 5.3 percent drop in March. Medical care was the only subcategory of spending that increased, up 5.6 percent. Fuel, light & water charges plunged 22.2 percent while spending on education tumbled 14.6 percent. Transportation & communication slid 3.8 percent.

Definition
Household spending is an important gauge of personal consumption, which accounts for roughly 55 percent of Japan's gross domestic product.

Description
The report looks at spending of households and gives a picture of consumer spending. Increases in household spending are favorable for the Japanese economy because high consumer spending generally leads to higher levels of economic growth. Higher spending is also a sign of consumer optimism, as households confident in their future outlook will spend more. The preferred number is the change from the previous year. The data are part of the family income and expenditure survey which is released at the same time as the employment and unemployment data.