Household spending rose a real 1.1 percent in July from a year earlier, with families spending an average 305,966 yen, the government said Friday.

The rise followed the first year-on-year decline in eight months in June. It reflects firm spending on housing and transportation, the Public Management, Home Affairs, Posts and Telecommunications Ministry said in a preliminary report.

Expenditures on items related to homemaking and renovation rose 6.2 percent, and those related to transportation and vehicles were up 3.5 percent.

Spending on clothes and shoes increased 4.3 percent.

In year-on-year nominal terms, household spending also registered a 0.9 percent rise. In month-on-month real terms, however, it fell 0.5 percent.

Household spending is a key gauge of personal spending, which accounts for about 60 percent of Japan’s gross domestic product.

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