TOKYO (AFX-ASIA) - Salaried household spending in May fell 2.6 pct year-on-year, marking the second month of falls, the Ministry of Public Management, Home Affairs, Posts and Telecommunications said. In April, spending fell 4.4 pct year-on-year.
The ministry attributed the downturn mainly to the impact of prolonged pressure on wage incomes amid sluggish corporate activity. Overall wage income fell 2.1 pct year-on-year following a 0.5 pct decline a month earlier, due to a 2.4 pct decline in homeowners' monthly wages, it said.
In addition, wage income by spouses dropped by 9.4 pct year-on-year and income by 'other' members of household also declined by 9.4 pct. In May, outlays for clothing and shoes fell 15.1 pct year-on-year, while spending on telecoms/transportation fell 2.3 pct, led by a 28.0 pct fall in auto purchases.
Expenditure on food fell 3.8 pct in May, while outlays on furniture and household products declined by 0.5 pct.
"It is not clear when the adverse impact of the introduction of the new recycling act in April (on home appliances) will fade," an agency official said.
The ministry, however pointed to positive developments in consumer sentiment, with the propensity to spend rising to 70.6 pct of disposable income from 69.1 pct in April, recovering the boom-and-bust level of 70 pct.