• Kyodo

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Average household spending grew 1.6 percent in June from a year earlier to ¥269,810 for the fifth consecutive monthly rise, the government said Tuesday.

Spending by salaried households increased 2.5 percent to ¥292,937, while their income increased a real, or price-adjusted, 3.8 percent to ¥712,592, the Internal Affairs and Communications Ministry said in a preliminary report.

The increase in household spending was partly because subsidies for environmentally friendly vehicles promoted car purchases while consumers took advantage of the soon-to-end Eco-point incentive for home renovations, according to the ministry.

Consumer spending on TVs, however, dropped after surging last year when people bought new sets before the transition from analog to terrestrial digital broadcasting.

The ministry said consumer spending is recovering to the level seen prior to the March 11, 2011, disasters.

It is not certain, however, whether household spending will sustain its growth because the car subsidy is expected to end soon.

Household spending is a key indicator for private consumption, which accounts for nearly 60 percent of Japan’s gross domestic product.

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