Latest news with #householdspending
NHK
04-07-2025
- Business
- NHK
Japan's household spending marks 1st rise in 2 months
Spending by Japan's households marked a first year-on-year increase in two months in May. They spent more on cars and travel. The internal affairs ministry says expenditures by households of two or more people jumped 4.7 percent from a year earlier, adjusted for inflation. The increase was the largest since August 2022. The average amount stood at just over 316,085 yen, or roughly 2,200 dollars. Spending on food was up 1 percent. The figure for rice fell 8.2 percent, the biggest drop since November 2022. In contrast, expenditures on noodles were up 7.6 percent. Meat slipped 2 percent. Fresh vegetables rose 3.7 percent. Ministry officials say rice and meat prices remained high, discouraging purchases by consumers. Yet they spent more on noodles and fresh vegetables, which were less affected by inflation.
News.com.au
04-07-2025
- Business
- News.com.au
Aussies splash cash on clothes and cars in May spending surge as rate cut chances firm up
Household spending soared in the month of May, surpassing market estimates just days after retail sales underwhelmed. Fresh figures from the ABS show household spending indicators gained 0.9 per cent month on month beating market predictions of a 0.5 per cent increase. The rise in household spending came just two days after soft retail data came in at 0.2 per cent, against forecasts of a 0.5 per cent lift. Commonwealth Bank senior economist Belinda Allen explained to NewsWire the difference in figures comes from how the data is collated. 'There's a few differences between the two releases, with retail trade being survey-based and only capturing around a third of consumer spending,' Ms Allen said. 'Monthly household spending intentions data, which came out today, uses bank transactional data and other sources so it includes a bit over 60 per cent of consumer spending. 'Depending on what cateorgy does well can mean the difference between the releases.' According to Friday's monthly household spending data seven of the nine spending categories rose in May, led by Clothing and footwear, which was up 3.7 per cent, Transport gained 1.7 per cent, and Miscellaneous goods and services rose 1.3 per cent. Alcoholic beverages and tobacco slipped 1.4 per cent and Food dropped 0.1 per cent to be the only two negative quarters. This follows a flat result in April and a 0.1 per cent fall in March. Robert Ewing, ABS head of business statistics, said the rise in May was driven by spending on discretionary goods and services. 'Discretionary spending rose 1.1 per cent, as households spent more on clothing and footwear, new vehicles, and dining out,' he said. 'Meanwhile, non-discretionary spending was up 0.5 per cent, rising for a fifth consecutive month.' Household spending is now 4.2 per cent higher than this time last year, led by health spending which jumped 8.4 per cent and miscellaneous goods and services which is up 8.3 per cent. Services spending was 7.5 per cent higher than May 2024, while goods spending was up 1.5 per cent. The boost in household spending indicators comes just days after the ABS also released its retail sales data which underwhelmed market expectations. Retail sales were up 0.2 per cent in May following a disappointing April which saw sales fall by 0.1 per cent even though Australians were treated to two public holidays in the month. Ms Allen said regardless of the figure used, it is too low to impact the RBA rate decision next week. 'When you look at the collective data since the May release … there has been enough to show that lower interest rates are both necessary and manageable for the Australian economy both from an activity and inflation perspective' she said. 'We have to remember interest rates are still in restrictive territory, they will still be in the restrictive territory with this next rate cut and the economic recovery is still pretty lacklustre.' Ms Allen said even though consumer spending picked up on today's household spending data it is too early to tell if Australia's economy is starting to track better. 'There are some green shoots in the data,' she said. 'Discretionary spend is a little stronger, including eating and drinking out so there are some areas where you can see an improvement in consumer spending. 'But if you look at how much it has lifted throughout the year, it is still pretty soft.'
Japan Times
04-07-2025
- Automotive
- Japan Times
Japan's households boost spending by most since summer of 2022
Household spending rose the most since the summer of 2022 amid persistent inflation, providing support for an economy that's taking a hit from U.S. tariffs. Outlays by households, adjusted for inflation, gained 4.7% from a year ago in May as spending on cars jumped, the internal affairs ministry reported Friday. The result beat the median economist estimate of a 1.2% gain. The jump in cars this year helped inflate the overall number but was largely due to comparison with low volumes last year resulting from a safety certification scandal, according to an internal affairs ministry official. Still, spending also grew for tourism both within and outside Japan while people also increased outlays on eating out.
Reuters
04-07-2025
- Business
- Reuters
Australia household spending rebounds in May, after fallow stretch
SYDNEY, July 4 (Reuters) - Australian household spending rebounded in May after three months of weakness, as consumers snapped up clothes and cars in a sign lower borrowing costs and rising real incomes might finally being felt. The Australian Bureau of Statistics' monthly household spending indicator (MHSI) showed a seasonally adjusted rise of 0.9% in May, when analysts had looked for an increase of around 0.5%. That followed a flat April and a 0.1% dip in March and left annual growth modestly higher at 4.2%. "Discretionary spending rose 1.1%, as households spent more on clothing and footwear, new vehicles, and dining out," said Robert Ewing, ABS head of business statistics. Discretionary spending had fallen in both of the previous two months. The improvement was in contrast to data showing retail sales alone rose just 0.2% in May, half the gain expected by markets. Household spending comprises around 52% of gross domestic product but made only a minor contribution to growth in the first quarter when the economy expanded by a meagre 0.2%. Financial markets are still convinced the Reserve Bank of Australia will cut interest rates again when it meets next week, given consumption growth remains short of its forecasts and inflation slowed markedly in May. Futures imply around a 97% chance the RBA will trim its cash rate by 25 basis points to 3.60%, the third easing this cycle. The MHSI series will replace the current retail sales report from July and is much broader in scope, covering 68% of household consumption, more than double the retail survey. It includes spending on many services and should offer a better guide on what to expect from household consumption in the gross domestic product report.
Yahoo
04-07-2025
- Business
- Yahoo
Japan's Households Boost Spending by Most Since Summer 2022
(Bloomberg) -- Japan's household spending rose the most since the summer of 2022 amid persistent inflation, providing support for an economy that's taking a hit from US tariffs. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds Massachusetts to Follow NYC in Making Landlords Pay Broker Fees Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals What Gothenburg Got Out of Congestion Pricing Outlays by households, adjusted for inflation, gained 4.7% from a year ago in May as spending on cars jumped, the Ministry of Internal Affairs and Communications reported Friday. The result compared with the median economist estimate of a 1.2% gain. Beyond a clear jump in spending on cars, outlays grew for tourism both within and outside Japan, while there was less money being gifted. Consumption makes up more than half of Japan's economic output and could determine whether the economy will enter or avoid a technical recession. US tariffs including a 25% levy on cars and car parts are weighing on Japan's exports, raising the risk that the economy may shrink again in the second quarter after contracting in the first three months of the year. Around 64% of economists polled in early June see the tariffs potentially causing a recession in the world's fourth-largest economy. Inflation remains persistently above the central bank's 2% target. Nominal wages have been on the rise, but real wages adjusted for inflation have fallen for four months nonstop through April, meaning that a rise in paychecks has yet to offset the pain of inflation. May wage data are due on Monday. Ahead of an upper house election on July 20, Prime Minister Shigeru Ishiba is proposing fresh cash handouts to help households deal with inflation. Some opposition parties are pitching a sales tax cut as an alternative to ease the pain. (Updates with more details from the report, background.) SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Sperm Freezing Is a New Hot Market for Startups ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
