| Consensus | Consensus Range | Previous | |
| Month over Month | 0.6% | -0.4% to 2.9% | -2.9% |
| Year over Year | 1.8% | 0.6% to 5.2% | -2.6% |
Market Consensus Before Announcement
Japan’s real household spending is expected to rebound on the year in January as spending on services is believed to have increased amid higher winter bonuses, while the government’s measures to curb energy prices helped create room for households to increase spending.
Household expenditure in January appears to have recovered across a wide range of areas, including automobiles, food and beverages, and textiles, apparel and personal goods. Still, consumption of nondurable goods remained weak due to the continued rise in food prices.
Household spending is expected to rise 1.8 percent on the year in January after declining 2.6 percent a month earlier. December’s fall was partly a reaction to the previous month’s jump in automobile purchases. In addition, there was a drop in another volatile item, home maintenance and repairs. Even the core measure of expenditures (excluding housing, motor vehicles and remittances) fell 1.5%, indicating that consumers remain frugal.
On a month-on-month basis, household spending is expected to rise 0.6 percent in January, rebounding from a 2.9 percent fall a month earlier.
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.