Japan’s Nov. household spending falls 1.2%, 1st decline in 6 months

Households of two or more people spent an average of 285,947 yen ($2,200), the Ministry of Internal Affairs and Communications said. On a seasonally adjusted basis, spending declined a real 0.9 percent from October.

By category, spending on clothing and footwear dropped 9.3 percent, down for the first time in nine months, as warmer-than-usual weather weakened demand for winter clothes such as coats, a ministry official said.

Outlays on furniture and household goods such as futon bedding dropped 5.2 percent from a year earlier.

Expenditure on food and beverage items including alcohol decreased 2.9 percent, affected by weakening demand for alcoholic drinks following their price hikes in October, the official said.

Meanwhile, spending on entertainment expanded 7.4 percent, as the soccer World Cup in Qatar held in November to December stirred purchases of new televisions and sportswear, according to the official.

On a nominal basis, spending was up 3.2 percent from a year earlier, up for the eighth straight month, reflecting the impact of inflation.

Household spending is a key indicator of private consumption, which accounts for more than half of the country's gross domestic product.