MNI 5 THINGS: Japan Aug Household Spending Up; View Upgraded

--Japan Aug Household Spending +2.8% Y/Y; MNI Median -0.4% 

--Japan Aug Household Spending Posts 2nd Straight Y/Y Rise 

--Japan Govt Upgrades View on Spending, Says Picking Up 

--Japan Aug S/A Household Spending +3.5% M/M; July -1.1% 

--Japan Aug S/A Household Spending Posts 1st M/M Rise in 2 Months

     TOKYO (MNI) - Japan's real average household spending rose 2.8% on year in

August, thanks to higher spending on transportation and communication as well as

on education, data released Friday by the Ministry of Internal Affairs and

Communications showed.

     The key points from the monthly Family Income and Expenditure Survey on

Households.

     --Real average spending by households with two or more people posted the

second straight year-on-year rise in August, up 2.8% after adjustment for the

difference caused by using two different survey methods. August outpaced the MNI

median economist forecast which looked for a 0.4% fall.

     --The ministry upgraded its assessment on household spending for the second

straight month, saying household spending "is picking up." Previously, the

government said, it is "firm and flat."

     --The August increase was led by the recent pickup in demand for cars and

some mobile communications payments. Higher spending on education and housing

also contributed to boosting household spending.

     --On the downside, record high temperatures reduced spending on domestic

travel.

     --On the month, real average household spending rose 3.5% in August, the

first m/m rise in two months following a fall of 1.1% in July. The average real

income of households with salaried workers fell 0.6% on year, marking the second

straight drop after a 1.6% drop in July.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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