Japanese consumers spent more money in January

7 years ago by in Japan

Household spending rose in January six times faster than expected, according to figures provided by Japan’s internal affairs ministry.

The actual reported growth was 2.4 percent, instead of the rising of 0.4 percent compared to January 2012 that was expected by the economists.

Another sign of the economy’s recovery was given last month, when the advertising expenditure had risen for the first time in five years during 2012, increasing by more than 3 percent on an annual basis.

Consumers started to spend again on premium products, according to Japan Consuming, the market intelligence source, which observed that same-store sales at department stores rose for the first time in 16 years in 2012.

More people are becoming optimistic about their income growth and job security in the coming six months, according to the international press.

Referring to the spending figures, Koya Miyamae, an economist at SMBC Nikko Securities, pointed to “the rise in optional consumption”, covering areas such as entertainment.

However, he added that the increase in consumption was not likely to continue unless the wages will rise too.