MNI 5 THINGS:Japan Sept Household Spending Falls; Outlook Down

--Household Spending -1.6% Y/y VS Median +1.6%

--First Decline in Three Months

--Household Spending -4.5% M/m VS Aug +3.5% 

     TOKYO (MNI) - Japan's real average household spending fell 1.6% in

September from a year ago on a seasonally adjusted basis, as expenditures on

medical services and housing declined, according to Family Income and

Expenditure Survey on Household released by the Ministry of Internal Affairs and

Communications on Tuesday.

     The five major points are:

     --Spending by households with two or more people fell 1.6% y/y after

adjusting for the two survey methods. A survey of 13 economists by MNI had

projected a 1.6% rise.

     --The ministry downgraded its assessment on the measure's outlook for the

first time in five months, saying household spending "is picking up but marking

time." Previously, the government described its view as "picking up."

     --September's drop was led by the reduction in demand for medical services

and housing, which fell 6.4% y/y and 2.2% y/y. Spending on clothing and footwear

however rose 2.0% y/y.

     --Household spending recorded first m/m drop in two months, down 4.5% from

3.5% rise in August. 

     --The average real income of households with salaried workers fell y/y for

a third month, or down 1.5%. The measure dropped 0.6% y/y in August.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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