Tokyo, 8 April, /AJMEDIA/
Japan’s household spending in February rose 1.6 percent from a year earlier, marking the first increase in four months, as people spent more on travel amid a recovery from the coronavirus pandemic, government data showed Friday.
Households of two or more people spent an average of 272,214 yen, the Ministry of Internal Affairs and Communications said.
Expenditures on recreation and leisure, including accommodation, grew 10.8 percent as more people went out and travel demand grew on the back of government subsidies promoting domestic tourism, a ministry official said.
Purchases of clothing and footwear rose 10.4 percent, spurred by increased demand for suits and other formal clothing for graduation and entrance ceremonies at schools in the spring.
Spending on utilities such as electricity and gas climbed 13.2 percent as bills for January increased due to low temperatures in the country.
Meanwhile, food outlays fell 0.4 percent, declining for the fifth consecutive month, as people chose to eat out rather than at home, the official said.
“While it cannot be ruled out that people are spending less on food due to inflation, the declining trend likely reflects more people spending outside,” the official said.
On a nominal basis, spending increased 5.6 percent from a year earlier, up for the 11th straight month, reflecting the impact of inflation.
The data is a key indicator of private consumption, which accounts for more than half of the country’s gross domestic product.
