Japan Personal Spending Rises Less than Expected

2025-03-10 23:37 By Farida Husna 1 min. read

Household spending in Japan increased by 0.8% year-on-year in January 2024, slowing from a 27% rise in the previous month and missing market forecasts of 3.6% as the impact of winter bonuses subsided.

The sharp slowdown reflected declines in expenditures for food (-2.4% vs -1.2%), clothing and footwear (-7.6% vs 4.1%), furniture and household goods (-10.7% vs -1.4%), transport and communication (-0.2% vs 6.5%), culture and recreation (-1.9% vs 0.7%), other consumption (-0.9% vs 5.2%), and miscellaneous items (-0.3% vs 13.1%).

In contrast, spending rose for housing (39.2% vs 15.8%), fuel, light, and water charges (1.9% vs -2.4%), medical care (0.2% vs 4.6%), and education (9.9% vs 3.8%).

Monthly, personal spending declined by 4.5%, reversing December's 2.3% increase and topping estimates of a 1.9% drop.

It also marked the first monthly decrease since last September and the steepest pace in three years.



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