Japan July real household spending +1.4% y/y (June +1.3%), third straight rise; median forecast +1.9% (range: +0.5% to +2.9%)

Japan July real household spending seasonally adjusted +1.7% m/m (June -5.2%), first rise in two months; median forecast +1.2% (range: -0.3% to +2.1%)

Japan July real core household spending (ex-housing, vehicles, gift money) +0.2% y/y against +0.4% in June when overall spending rose 1.3%

Japan July household spending y/y rise led by auto purchases, healthcare services; gift money, facility repair fees, mobile phone charges Down

Japan July average real household income -2.5% y/y (June -1.7%); +1.0% in nominal terms (June +2.0%)

Key forecast points:
--Japan's real average expenditures by households with two or more people is forecast to risen 1.9% on the year in July, led by continued post-pandemic eating out and a general recovery trend in auto purchases after last year’s Toyota group output suspension over safety check scandals. It would follow a weaker than expected 1.3% rise in June, a solid 4.7% gain in May and a 0.1% slip in April.
--Seasonally adjusted spending is seen up 1.2% on the month after plunging 5.2% in June, rebounding 4.6% in May and slipping 1.8% in April.

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.