03.04.202523:37:07UTC+00Japan Personal Spending Drops Less than Expected

In February 2024, household spending in Japan experienced a year-on-year decrease of 0.5%, following a 0.8% rise in January. This marked the first downturn since November, yet it was more favorable than the anticipated 1.7% decline projected by market analysts. Expenditure reductions were most notable in categories such as food, which saw a 4.5% decline compared to the previous 2.4%, clothing and footwear, which dropped by 12.5% relative to the earlier 7.6%, and furniture and household goods, decreasing by 8.7% as opposed to the previous 10.7% fall. There was also a downward shift in spending on housing, dropping by 8.1% from a previous growth of 39.2%; medical care, which declined by 7.1% from a 0.2% increase; and education, which saw a 1.9% fall after experiencing a 9.9% rise. Conversely, spending rebounded in sectors like transport and communication, which went up by 4.6% from a previous decline of 0.2%, culture and recreation, which improved by 2.6% from a previous fall of 1.9%, as well as other consumption categories and miscellaneous items, with expenditures increasing by 4.7% and 9.4%, respectively. Notably, spending in fuel, light, and water charges surged by 7.6%, up from a previous 1.9% increase. On a monthly basis, personal spending grew by 3.5%, recovering from January's 4.5% decline and surpassing the anticipated 0.5% gain. This increase represents the most significant growth since March 2022.