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Japan Household Spending Up 0.5% For April, 1st Rise In 14 Months

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Japan's household spending in April rose a real 0.5 percent from a year earlier for the first increase in 14 months, lifted by increased outlays on education and clothing amid warm temperatures, government data showed Friday.

While a three-day holiday in the reporting month also helped increase outlays, "As a trend, it's hard to say that spending is moving upward," a ministry official said.

Households of two or more people spent an average of 313,300 yen ($2,000), the Ministry of Internal Affairs and Communications said. The gain followed a 1.2 percent decline in March.

By category, spending on education surged 25.9 percent, as tuition fees at private universities increased after measures to exempt or waive them due to the coronavirus pandemic ended, the official said.

But expenditures on food, which account for around 30 percent of spending, fell 2.7 percent due to people purchasing less vegetables and meat amid rising prices.

Outlays on clothing and footwear climbed 11.3 percent driven by purchases for summer clothing, with April recording higher temperatures than usual, the official said.

Spending on health and medicine was up 1.2 percent, led by health services, as people started paying for coronavirus vaccines after the government finished offering free inoculations.

Prices of food and other items have been rising on higher import costs inflated by a weaker yen, while real wages have been declining because salary increases have failed to keep pace with inflation.

Spending on transportation and communication dropped 10.2 percent, led by reduced new car purchases due to safety test rigging at Toyota Motor Corp. group firms that resulted in a vehicle production and shipping halt, affecting supply.

The spending data is a key indicator of private consumption, which accounts for over half of Japan's gross domestic product.
 
 

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