TOKYO (AFX-ASIA) - Salaried household spending in February rose 0.9 pct year-on-year after being unchanged in January, the Ministry of Public Management, Home Affairs, Posts and Telecommunications said. This was the first time that the household spending has not shown a year-on-year fall for three months in row since it did so between January and March of 1999 when household rushed to spend ahead of the consumption tax hike.
"Household spending, given the condition surrounding wage incomes, fared well," a ministry official said.
"There is the possibility that underlying (consumer) sentiment is relatively solid," he added, citing the propensity to spend ratio. The propensity to spend rose to 74.4 pct of disposable income from 71.7 in January, staying above the boom-and-bust line of 70 pct for the second straight month.
Overall wage income fell 2.1 pct year-on-year following a 1.4 pct decline in the previous month, hurt by a 3.0 pct drop in the monthly wage of home owners.
The ministry attributed the relatively large decline in wage of home owners partly to the leap year factor which might have pushed up wage levels in the corresponding month last year.
The ministry official said the prospect for the overall household spending remains uncertain, as "a growth in over-time works came to halt recently."
In February, outlays on telecoms/transportation rose 19.9 pct, led by a 88.8 pct increase in spending on auto purchases. Spending on food fell 3.6 pct year-on-year, while outlays on clothing and footwear fell by 11.2 pct year-on-year, the 16th straight fall.
Outlays on furniture and household products jumped by 9.9 pct year-on-year, led by a 61.9 pct increase in expenses on air conditioners in run-up to the introduction of new recycling regulation for home appliances.