People wearing face masks to protect against the spread of the coronavirus walk along a street in Tokyo, on Nov. 29, 2021. (AP Photo/Koji Sasahara)
TOKYO (Kyodo) -- Japan's household spending fell a real 0.6 percent in October from a year earlier, led by a plunge in purchases of furniture and other household goods after the government's cash handout boosted outlays on such items last year, government data showed Tuesday.
Average spending by households with two or more people was 281,996 yen ($2,500), decreasing for the third straight month, the Ministry of Internal Affairs and Communications said.
The pace of year-on-year decline slowed from the previous month, however, as expenditure related to eating out and traveling started to recover following the complete lifting of the coronavirus state of emergency on Oct. 1, a government official said.
During the emergency declaration that lasted for months in several prefectures, including Tokyo and Osaka, people were requested to stay at home while restaurants and bars were asked to close earlier and not to serve alcohol.
By component, spending on furniture and household amenities such as tables, sofa and washing machines, dropped 16.7 percent from a year earlier as purchases of such items were lifted last year by the 100,000 yen per person cash handouts aimed at easing the economic fallout from the pandemic.
Outlays for culture and recreation, including domestic package tours and accommodation, dipped 5.4 percent in reaction to expansion in travel demand promoted last year by the government's "Go To Travel" subsidy program.
Meanwhile, transportation expenses including airfares and rail rates climbed 15.3 percent as railway operator data showed increased short-distance travel following the lifting of the state of emergency, the official said.
On a month-to-month basis, spending in October rose a seasonally adjusted 3.4 percent from the previous month, rising for the second consecutive month, following a 5.0 percent increase in September.
The average monthly income of salaried households with at least two people in October advanced a real 0.4 percent from a year earlier to 549,269 yen.
Household spending is a key indicator of private consumption, which accounts for more than half of Japan's gross domestic product.
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