The income and expenditure of workers' households both declined in 2011, according to the results of the 2011 family income and expenditure survey announced on October 12, 2012, by the Statistics Bureau and the Director-General for Policy Planning of Japan.
(1) The average monthly income per household in 2011 was 462,221 yen, down 2.0% in nominal terms and down 1.7% in real terms from the previous year; this was the first decrease in both nominal and real terms in three years.
(2) Non-consumption expenditure was 81,358 yen, down 0.6% in nominal terms from the previous year and the first decrease in three years. Among categories of non-consumption expenditure, direct taxes, such as earned income tax and residence tax, decreased by 2.6% in nominal terms, while social insurance premiums, such as public pension insurance and health insurance, increased by 0.8% in nominal terms.
The ratio of non-consumption expenditure to income was 17.6%, up 0.2 percentage points from the previous year.
(3) Disposable income, that is, income minus non-consumption expenditure, was 380,863 yen, down 2.3% in nominal terms and down 2.0% in real terms from the previous year.
(4) Consumption expenditure was 275,999 yen, down 2.6% in nominal terms and down 2.3% in real terms from the previous year; this was the first drop in real terms in three years.
(5) The average propensity to consume, that is, the ratio of consumption expenditure to disposable income, was 72.5%, down 0.2 percentage points from the previous year and registering a decrease for the second consecutive year.
(6) The surplus, that is, disposable income minus consumption expenditure, was 104,863 yen, down 1.5% in nominal terms from the previous year. The ratio of surplus to disposable income was 27.5%, up 0.2 percentage points from the previous year.
Income and Expenditure Trends (yen)