The government in June released the results of its 2015 survey of family income and expenditure. The following is an outline of the results.
1. Expenditure of Two-or-More-Person Households
(1) The yearly average of monthly consumption expenditure per household was 287,373 yen, down 1.3% in nominal terms (the first downturn after a four-year rise) and down 2.3% in real terms (the second consecutive decrease) from the previous year.
(2) Among 10 major categories of consumption expenditure, spending on "Clothing & footwear," "Other consumption expenditures" (including social expenses, etc.), and "Culture & recreation" decreased in real terms year-on-year by 7.2%, 4.1%, and 4.0%, respectively.
(3) Spending on goods was 149,809 yen, down 2.1% in nominal terms and down 2.9% in real terms from the previous year. Spending on services was 109,644 yen, up 0.3% in nominal terms but down 0.9% in real terms from the previous year.
2. Income and Expenditure of Workers' Households: Two-or-More-Person Households
(1) The yearly average of monthly income per household was 525,669 yen, up 1.1% in nominal terms and up 0.1% in real terms over the previous year; the figure marked the first increase after an interval of two years.
(2) Nonconsumption expenditure was 98,398 yen, up 2.3% in nominal terms over the previous year. Among the categories of nonconsumption expenditure, direct taxes, such as earned income taxes and residence taxes, increased by 1.5% in nominal terms, and social insurance premiums, such as public pension insurance and health insurance, rose by 2.8% in nominal terms. The ratio of nonconsumption expenditure to income was 18.7%, up 0.2 percentage points over the previous year.
(3) Disposable income (that is, income minus nonconsumption expenditure) was 427,270 yen, up 0.9% in nominal terms but down 0.1% in real terms from the previous year.
(4) Consumption expenditure was 315,379 yen, down 1.1% in nominal terms and down 2.1% in real terms from the previous year; in real terms the figure decreased for the second consecutive year.
(5) The average propensity to consume (that is, the ratio of consumption expenditure to disposable income) was 73.8%, down 1.5 percentage points from the previous year. The surplus (that is, disposable income minus consumption expenditure) was 111,891 yen, up 6.8% in nominal terms over the previous year. The ratio of surplus to disposable income was 26.2%, up 1.5 percentage points over the previous year.