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Average monthly household spending down record 5.3% in 2020

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‘people are spending less money’

yup

12 ( +12 / -0 )

the average monthly income of salaried households grew a real 4.0 percent... the biggest increase since 2001.

Proof that the across-the-board stimulus payment was excessive.

-12 ( +2 / -14 )

Don't worry economists, my wife is making up for it. My house is like an amazon depot.

16 ( +16 / -0 )

Japan's average monthly spending by households in 2020 fell a real 5.3 percent from the previous year, marking the sharpest drop on record, as people refrained from going out due to the novel coronavirus pandemic, government data showed Friday.

Government expect people to spend more during pandemic? From 100 thousands yen that they give out.

7 ( +7 / -0 )

Friday's data also showed that the average monthly income of salaried households with at least two people grew a real 4.0 percent to 609,535 yen in 2020

What is the significance of this stat over simply the average monthly income?

’Salaried households with at least 2 people’ means 2 or more people earning salaries, or just 2 or more people living in the house? Does it include a partner working part-time or on a non-permanent contract if the other person is salaried, or only includes the salaried earner?

6 ( +6 / -0 )

From the citizen’s perspective: No secure $ future + NO change in pay + More taxes = Less spending.

average monthly spending in 2020 fell 5.3%, marking the sharpest drop on record,...since a 2.9% decrease in 2014 when the consumption tax was raised to 8% from 5%”...

one more detail overlooked in the report:

and, ‘**the consumption tax was (again) raised’ from 8% to 10% in October 2019. **

So, Not just COVID as an excuse for decreased household spending in 2020.

5 ( +5 / -0 )

JeffLee

the average monthly income of salaried households grew a real 4.0 percent... the biggest increase since 2001.

Proof that the across-the-board stimulus payment was excessive.

You forgot the next paragraph.

“The higher income is due largely to the government's program that provided 100,000 yen in cash to all of Japan's 126 million residents to help cope with the economic fallout from the pandemic.”

8 ( +9 / -1 )

Friday's data also showed that the average monthly income of salaried households with at least two people grew a real 4.0 percent to 609,535 yen in 2020, up for the second straight year and the biggest increase since 2001.

The higher income is due largely to the government's program that provided 100,000 yen in cash to all of Japan's 126 million residents to help cope with the economic fallout from the pandemic.

More evidence of the "K" shaped so-called recovery.

Salaried households are no longer the majority and the rest of the non-regular classifications of workers are dropping farther behind in income and racking up debt with little relief and the long gone one time "stimulus".

3 ( +3 / -0 )

Spending less or spending smart ?

2 ( +2 / -0 )

This will go down more.. This is just begining..

3 ( +3 / -0 )

@Sevenseas

No, that exactly my point. The average household didnt need the stimulus as average income was strong without it -- and then they didnt spend it, anyway. "Excessive."

Assistance should be targeted to those who need it -- not given away to affluent people who dont need it.

4 ( +6 / -2 )

It turns out that closing small businesses result in layoffs, bankruptcies and no disposable income to spend.

2 ( +2 / -0 )

Another shallow poll?

we are spending like crazy because you only live once. Family and friends too.

-2 ( +1 / -3 )

Another shallow’ self-centered comment?!?! (‘Just to stir the pot’)

There are people suffering from this situation!

1 ( +2 / -1 )

we are spending like crazy because you only live once. Family and friends too.

Good for you, however if in 20 years you find yourself sleeping under a tarp sheet in yoyogi park with a 1 cup sake for company think back to this. Circumstances can change fast, better to be financially safe.

1 ( +1 / -0 )

Well all those who have no job or no overtime would say that income has dropped significantly

But why go there, they all got 100,000 should last a couple of years

0 ( +1 / -1 )

@Snowey: Yes, that is why a comment section is important. Stirring the pot creates open conversation and fosters different ideas, attitudes and possible solutions to fix things that are a mess with the world, all cultures, and societies. It is healthy.

@Tokyo: in twenty years could I possibly be 87? Would it not be wiser for me to have spent what I worked hard to earn long before the blue sheets and one cup of Ozake?

I am here to make people think, look at options and be nice to others. Sometimes controversial comments can help others in need.

1 ( +2 / -1 )

les you make less you spend.

this makes completely sense for me.

not some novel corona virus as its used for excuse for almost anything now...

many have lost jobs,career in vain and uncertain future.add no actions of useless goverment and its PM and...thats all ,picture is complete

1 ( +1 / -0 )

Apologies to All of You that take time to “reflect on our society ‘as a whole’” and Then, ...make ‘conscientious comments’.  

To paraphrase, “SOME aren't looking for anything logical...They can't be reasoned or negotiated with. SOME, just want to watch the world burn.

Back on topic: Yes, @didou 8:26a JST Spending less, AND ...spending smart.

0 ( +0 / -0 )

Friday's data also showed that the average monthly income of salaried households with at least two people grew a real 4.0 percent to 609,535 yen in 2020,

Why only produce data for seishain households? Do the others not matter?

This number is likely to be like personal income, where the average is around the 70th percentile. So 69% earn less and the average is bumped up by high earners. A single salary of 7 million yen gross will give you about 5.4 million after tax and insurance. 450,000 a month.

We couldn't go and see my family in the UK in 2020, so that was our main drop in spending.

4 ( +5 / -1 )

JeffLee

Assistance should be targeted to those who need it -- not given away to affluent people who dont need it.

To an extent I agree, but where’s the line? A household with an income of 5 million doesn’t get assistance, but one with 4.9 does? The govt gives all the members of my family 100,000 yen each but next door gets zero?

On a personal note, my family didn’t ‘need’ the money per se, but we appreciated it, and have earmarked it for a specific, future purchase.

So, while that money may not be injected in to the economy immediately, it certainly will be eventually. I’m sure that’s true for lots of other recipients, and those who truly did need it will spend it much quicker. And the very wealthy? Well I’d like to say they’ll donate it or use it altruistically, but I’m sure it’ll go into the stock market where it’s no good to anyone. As is their right, obviously.

2 ( +2 / -0 )

Average monthly household income down record 55.3% in 2020...

2 ( +2 / -0 )

Friday's data also showed that the average monthly income of salaried households with at least two people grew a real 4.0 percent to 609,535 yen in 2020,

that would equal about 140,000 per person over the year. Which would be roughly equivalent to a family with 2 parents and one kid receiving 100,000 each.

However, given that we've seen data that a lot of people on non-permanent contracts have lost their jobs, and I know a lot of freelancers have lost income, and that thousands of particularly women have lost their jobs, it's kinda weird that the average income hasn't dropped a fair bit more.

If they are calculating the average income, are they then not including people who have lost their jobs? Because if it is mainly low-paid people who have lost jobs then that would actually push the average income of working people up.

Personally, I don't really care that much if the aid is targeted or not targeted, I care if the people who need the aid get the aid that they need.

2 ( +2 / -0 )

COVID

-2 ( +0 / -2 )

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