JP: Household Spending

Thu Sep 28 18:30:00 CDT 2017

Consensus Actual Previous
Year over Year 1.1% 0.6% -0.2%
Month over Month -0.1% -1.9%

August household spending was up a less than anticipated 0.6 percent when compared with the same month a year ago. An increase of 1.1 percent was expected. Core household spending slipped a monthly 0.1 percent. The slower than expected growth was attributable to a 12.5 percent drop in education. That decline combined with a 7.4 percent drop in annual medical care spending led to the less than anticipated increase. On the plus side, furniture and household utensils were 3.8 percent higher while transportation & communication spending bounced an annual 7.1 percent higher.

Consumer spending is critical to the wellbeing of the Japanese economy and this report gives some encouraging news.

Household Spending is an important gauge of personal consumption, which accounts for roughly 55 percent of Japan's gross domestic product. It is part of the monthly Family Income and Spending Report.

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.