Japan Household Spending YoY

Household spending in Japan shrank in real terms by 0.4% yoy in November 2024, compared with market expectations of a 0.6% drop and following a 1.3% decline in the previous month. It was the fourth consecutive month of decrease but the softest in the sequence. Spending was weak for food (-0.6% vs -0.8% in October), fuel, light & water charges (-2.9% vs 8.0%), furniture and household goods (-13.8% vs -5.8%), clothing and footwear (-13.7% vs -13.7%), transportation and communication (-0.5% vs flat reading), culture & recreation (-2.9% vs -3.0%), other consumption (-2.7% vs 7.2%), and miscellaneous items (-5.9% vs 13.4%). On the other hand, expenditures rebounded for housing (18.7% vs -10.7%), medical care (0.8% vs -2.4%), and education (31.9% vs -14.0%). Monthly, personal spending rose by 0.4%, much softer than October's 14-month peak of 2.9% growth, beating consensus of a 0.9% decrease.

Japan's household spending fell by 1.3% yoy in October 2024, compared to a 1.1% decline in the previous month. This marked the third consecutive month of decrease, but it was less severe than market forecasts of a 2.6% drop. Spending contracted for food (-0.8% vs flat reading in September), housing (-10.7% vs -3.4%), furniture and household goods (-5.8% vs -0.3%), clothing and footwear (-13.7% vs 17.5%), medical care (-2.4% vs -2.7%), education (-14.0% vs 8.8%), and culture & recreation (-3.0% vs flat figures). Meanwhile, expenditure on fuel, light & water charges slowed slightly (8.0% vs 8.5%). On the other hand, transportation and communication expenditure remained flat after tumbling 11.8% previously. Simultaneously, spending on other consumption bounced back (7.2% vs -1.3%), alongside miscellaneous items (13.4% vs -2.5%). Monthly, personal expenditure grew by 2.9%, the most since August 2023, and far above consensus of a 0.4% rise.

Japan's household spending fell by 1.1% year-on-year in September, a smaller decline than the 1.9% drop recorded in August and better than market expectations for a 2.1% decrease. This marks the seventh month of reduced household spending in 2024. Spending decreases were noted in several categories, including transportation and communication (-11.8%), housing (-3.4%), medical care (-2.6%), consumption expenditures (-1.1%), and furniture and household goods (-0.3%). However, spending rose in other areas, such as clothing and footwear (17.5%), fuel, light, and water charges (8.5%), education (8.8%), and other consumption items (0.3%). On a monthly basis, personal spending fell by 1.3% in September, reversing the 2% increase seen in August and coming in worse than the 0.7% drop forecasted by analysts.