| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Month over Month | -0.3% | -1.4% to 0.5% | 0.6% | 1.7% |
| Year over Year | 1.0% | 0.2% to 1.7% | 2.3% | 1.4% |
Highlights
JAPAN AUG REAL HOUSEHOLD SPENDING +2.3% Y/Y (JULY +1.4%), 4TH STRAIGHT RISE; MEDIAN FORECAST +1.0% (RANGE: +0.2% TO +1.7%)
JAPAN AUG REAL HOUSEHOLD SPENDING S/A +0.6% M/M (JULY +1.7%), 2ND STRAIGHT RISE; MEDIAN FORECAST -0.3% (RANGE: -1.4% TO +0.5%)
JAPAN AUG REAL CORE HOUSEHOLD SPENDING (EX-HOUSING, VEHICLES, GIFT MONEY) +3.0% Y/Y VS. +0.2% IN JULY WHEN OVERALL SPENDING ROSE 1.4%
JAPAN AUG HOUSEHOLD SPENDING Y/Y RISE LED BY AUTO PURCHASES, OVERSEAS/DOMESTIC PACKAGE TOURS, DONATION; DROP IN GIFT MONEY, RICE, OTHER REMITTANCES WEIGH
JAPAN AUG REAL HOUSEHOLD SPENDING S/A +0.6% M/M (JULY +1.7%), 2ND STRAIGHT RISE; MEDIAN FORECAST -0.3% (RANGE: -1.4% TO +0.5%)
JAPAN AUG REAL CORE HOUSEHOLD SPENDING (EX-HOUSING, VEHICLES, GIFT MONEY) +3.0% Y/Y VS. +0.2% IN JULY WHEN OVERALL SPENDING ROSE 1.4%
JAPAN AUG HOUSEHOLD SPENDING Y/Y RISE LED BY AUTO PURCHASES, OVERSEAS/DOMESTIC PACKAGE TOURS, DONATION; DROP IN GIFT MONEY, RICE, OTHER REMITTANCES WEIGH
Market Consensus Before Announcement
Japan's real household spending is forecast to post a modest 1.0% increase on the year in August slowing from recent gains of 1.4% in July, 1.3% in June and 4.7% in May as the killer heat wave promoted many people to stay at home or in the office during the day to avoid extreme heat and humidity. That is believed to have somewhat offset the uplifting impact of solid demand for beverages, summer clothing and air conditioners. The recent recovery in vehicle purchases has also run its course after last year’s Toyota group output suspension over safety check scandals.
Easing but still elevated processed food inflation in the aftermath of severe domestic rice supply shortages has also kept many households cautious, spending less on non-essential items including gift money in line with simplified weddings and funerals during the pandemic.
On the month, real average expenditures by households with two or more people are expected to post a seasonally adjusted 0.3% drop after rising 1.7% in July and plunging 5.2% in June.
Easing but still elevated processed food inflation in the aftermath of severe domestic rice supply shortages has also kept many households cautious, spending less on non-essential items including gift money in line with simplified weddings and funerals during the pandemic.
On the month, real average expenditures by households with two or more people are expected to post a seasonally adjusted 0.3% drop after rising 1.7% in July and plunging 5.2% in June.
Definition
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.
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.
