Consumer spending in September fell by 6.8% in real terms, the first decline in six years due to bad weather

According to the September household budget survey report released by the Ministry of Internal Affairs and Communications on the 10th, households with two or more people spent 289,536 yen, which was a 6.8% decrease from September of the previous year in real terms, excluding the impact of price fluctuations. The rate of decrease was the largest in six years since September 2020, when it was 10.2%, and nine of the 10 categories of expenditures decreased. The Statistics and Research Department of the Ministry of Internal Affairs and Communications believes that the decline was due to people refraining from going out and shopping, as well as a decline in demand for summer items due to poor weather such as prolonged rain.

This is the 10th consecutive month that the year-on-year comparison has been negative in real terms. The amount actually spent (nominal value) also decreased by 4.5% compared to September of the previous year. The last time there was a large drop in sales was in September 2020, during the coronavirus pandemic, and there was also an element of a drop in demand following the rush in demand before the consumption tax hike in October 2019.

By expense item, food decreased by 2.5% in real terms. The decline in rice and beverages was significant. Prices of beverages and prepared foods are increasing at a high rate, and prices continue to decline in real terms.

Utilities and water decreased by 10.5%. Electricity bill (used in August, paid in September) decreased by 11.9%. This is thought to be due to the low temperatures in August. Clothing and footwear also decreased by 3.6%. Furniture and household goods decreased by 6.4%. The decline in household durable goods such as air conditioners was large. Spending on plastic bags and plastic wrap, whose prices have risen, is also decreasing.