By BridgeNews
Tokyo--Jan. 30--Average consumer spending by wage earners of Japanese households averaged 420,503 yen in December, up 0.8% in real terms from a year earlier, the Ministry of Public Management, Home Affairs, Posts and Telecommunications (MPHPT) announced Tuesday. The ministry also said seasonally adjusted household spending for December was up 0.5% on month.
* * * The adjusted spending in October-December was down 0.5% on quarter, suggesting personal consumption which accounts for about 55% of gross domestic product likely posted a decline on quarter in October-December. An MPHPT official told reporters Tuesday that the December household spending was up on year due to rises in passenger car purchasing,
expenditures for communications and outlays for education.
The adjusted ratio of consumption to disposable income stood at 75.8%, showing the highest level since June 1993 when the ratio had shown 76.8%, mainly because a sharp drop in disposable income.
Real disposal income was down 4.6% on year in the month due mainly to a major 4.8% drop in year-end bonus payments, adding that bonus payments from major corporations with 1000 employees or more posted growth, while that from small ones declined.
But the official said he could not clearly judge whether or not a decline was posted at the end of the year because bonuses are sometimes paid in January not December.
As for October-December, household spending was down 0.4% on year on unadjusted basis and down 0.5% on quarter on adjusted basis, the ministry said.
The adjusted ratio of consumption to disposable income stood at 71.8%, up from 70.9% in July-September.
The ministry added household spending was down 0.6% on year in the calendar year 2000, and the ratio of consumption to disposable income showed 72.1%, up from 71.5% in 1999.
The data are based on a survey of about 7,900 households nationwide with two or more members. It excludes households engaged in agriculture and forestry. Wage-earners households account for around 60% of 7,900 households, the ministry said.
The agency also gave the following data for December. Changes are percentages, adjusted for inflation unless specified, versus a year earlier.
Spending on goods and services excludes donations and allowances. "Pct spent" is percentage of disposable income spent.