Expectations of a strong pickup in consumer spending toward the close of 1999 have failed to materialize.

Consumer spending, which accounts for some 60 percent of gross domestic product, tapered off in December.

After allowing for seasonal variations, spending has shown a 2.4 percent month-on-month fall.

In an ordinary year, consumers spend 30 percent to 40 percent more in December than in other months.

The bulk of workers' bonuses is spent in December due to a number of seasonal factors, including Christmas and yearend gifts and gatherings.

As worries hovered over the much-talked-about Year 2000 computer problem late last year, families were widely expected to stock up their refrigerators with extra food.

However, consumers spent 5.2 percent less than they did the previous year.

Y2K fears not only failed to give spending a major lift, they also prompted consumers to give up trips and defer plans to buy personal computers until after the turn of the year.

However, Taichi Sakaiya, director general of the Economic Planning Agency, remains sanguine.

Although he blames the yearend spending slump on the Y2K problem, Sakaiya recently declared that consumer spending began picking up in January.

However, despite the 2.1 percent month-on-month increase posted in January, overall consumer spending still shows a 4.3 percent year-on-year fall.

While new video game machines sold out soon after they hit the market, it was only a reactionary pickup in demand since purchases had been put off during the Christmas season.

Given the bleak outlook for employment and income, a full recovery in consumer spending appears unlikely to materialize in the near term.

Still, with a good number of industries gearing up for higher production and corporate earnings showing signs of improvement, particularly in the information and technology industries, further economic slowdown appears unlikely.

Since consumer spending remains mired at a depressed level, it appears that the economy is headed for a slow recovery.