Household spending dropped in All Japan news by 0.4 percent in October, compared to the same month last year, falling for the eight consecutive month since the March natural disasters that hit All Japan news.
The internal affairs ministry said that the average monthly spending was Y285,605 ($3,660) in October. This is a key indicator which shows how healthy private consumption is.
The fall was smaller than in September, when the yearly evolution was of minus 1.9 percent. The October drop was also less than the average minus 1.5 percent which economists had indicated.
The unemployment rate rose in October to 4.5 percent, from 4.1 percent in September, and reached a maximum of the last three months.
“With the number of jobs in manufacturing falling, we’re already starting to see the impact of the global economic slowdown,” said Yoshimasa Maruyama, an economist at Itochu Corp. in Tokyo. In the event of any global financial crisis, “exports will fall off a cliff,” he added.