Japan's household spending dropped an inflation-adjusted 3.2 percent in January from a year earlier for the fifth monthly decline in a row, the Management and Coordination Agency said Monday.
The average monthly spending for the 7,782 families surveyed was 309,437 yen per household, the agency said.
Of the 7,782 households, spending by 4,734 households of salaried workers decreased a real 3 percent, as reported Feb. 29 in a preliminary report, while the average for other households fell 3.4 percent to 271,218 yen.
Household spending fell in seven of the 10 categories listed, in particular for furniture and housekeeping goods, which plunged 14.2 percent to an average 9,282 yen.
Spending on food fell 3.1 percent to 67,080 yen, and that on transportation and telecommunications shrank 5.5 percent to 30,802 yen despite an increase in telecom costs.
Outlays on utilities increased by 2.4 percent, spending on health care rose 3.3 percent, and that on education gained 2.3 percent, the agency said.
Sakaiya reckons 2%
Economic Planning Agency chief Taichi Sakaiya said Monday the Japanese economy should grow by about 2 percent in real terms in fiscal 2001, which starts April 1, 2001.
"I think at the moment the economy will realize growth of around 2 percent in line with its growth potential," Sakaiya told a meeting of the House of Councilors Budget Committee.
He also said gross domestic product will "probably show a fair advance in the January-March quarter of 2000," thanks to a recovery in personal consumption and improvement in leading indicators such as machinery orders and leasing charges.
"Solid economic growth is possible for the entire 1999 fiscal year, as expected," the top government economist said.
For the October-December quarter of 1999, however, Sakaiya said he predicts "a considerable minus figure, because of low bonuses."
The EPA said Monday it will release GDP data for the 1999 October-December quarter on Monday.
The government is aiming for 0.6 percent growth for fiscal 1999 and 1 percent growth for fiscal 2000.