Business

Household spending off for first time in three months

Spending by Japan’s wage-earning households fell a real 1.3 percent in June from a year earlier, marking a first decline in three months, the government said Friday.

Meanwhile, the households’ monthly disposable income decreased for the first time in six months.

The average monthly spending of these households came to 308,104 yen, the Public Management, Home Affairs, Posts and Telecommunications Ministry said in a preliminary report.

“Spending is believed to have been down partly because there was one fewer Sunday in the reporting month from a year earlier and typhoons landed in Japan,” a ministry official said.

Despite recent bright signs for the economy, the households’ average monthly income also fell 0.7 percent to 721,178 yen in real terms. Disposable income was down a real 0.9 percent to 595,043 yen.

The official attributed the drops largely to a cut in summer bonuses, particularly for those working at small firms.

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