02-12-2009 10:03Special Report: Global Financial Crisis
TOKYO, Feb. 11 (Xinhua) -- Japan's household spending saw the sharpest drop in 30 years in 2008, down by 1.9 percent year-on-year in real terms to some 3.5 million yen (38,460 U.S. dollars), said an advisory body on Wednesday.
The economic slowdown, which reduces household income and makes consumers reluctant to spend on daily necessities, is the key factor behind the spending decline, said the Dai-ichi Life Research Institute in its estimates.
Expenditures on clothing and footwear fell 3.5 percent and those on food was down 2.1 percent, according to the think tank.
Spending on furniture and household goods, however, climbed 3.7 percent as consumers attached more importance to energy-saving electrical appliances, it said.