### Section 3. Trends of workers' household expenditures

The improvement in consumer mind from expectations toward economic recovery and asset effects generated by the rise of stock prices have contributed to the increase in private consumption from the end of 2012 to early spring in 2013, which has led to economic recovery. In summer, the significant rise of stock prices stagnated and the economy slowed down. Since early autumn, private consumption showed a characteristic trend and turned upward again mainly in durable goods for automobiles due to the last-minute demand before consumption tax is increased.

Looking at the real consumer expenditure of workers' households by item in 2013, it showed a declining trend in housing (impact of declining rent) and the light and water utility (increased number of budget-minded consumers due to raised rates). However, the last-minute demand before the increase of consumption tax rate encouraged more purchases of automobiles and consumption increased in the field of transportation and communication (higher demand in smart phones (high function portable telephones)) and culture and entertainment (higher accommodation rate). The total consumer expenditure increased by 1.2% compared to the previous year.

## (In 2013, consumer expenditure of workers' households increased for the second consecutive year both in nominal and real values

Looking at the transitions of consumer expenditure and real income of workers' households according to Figure 16, consumer expenditures increased due to the improvement in consumers' minds from expectations toward economic recovery and asset effects generated by the rise of stock prices, which have contributed to the increase in private consumption from the end of 2012 to early spring in the following year. After that, it decreased as the rise of stock prices stagnated but showed a considerable increase in the period from January to March 2014 due to the last-minute demand before consumption tax rate increased. In 2013, the nominal consumer expenditure of workers' households increased by 1.7% from the previous year and the real consumer expenditure increased by 1.2% from the previous year, both showing an upward trend for the second consecutive year.

Looking at the quarterly transitions of consumer expenditure by item, in the period from January to March 2013, the consumer mind improved to the full extent (mentioned later) and the expenditure increased in items excluding housing, such as transportation and communication (purchase of automobiles), culture and entertainment, clothing and footwear. In this period, the private consumption showed an upward trend and the total consumer expenditure increased by 4.9% compared to that of the same period in the previous year.

In the period from April to June, stock prices have maintained a certain level with some fluctuations. Consumer expenditure increased in foods (health and medical services, liquor and food-service industries) and furniture and household products (durable household goods) and the total consumer expenditure increased by 1.1% from that in the same period of the previous year.

In the period from June to September, consumer expenditure decreased in the fields of housing and health and medical services but increased in culture and entertainment (education, accommodation and culture and entertainment goods) and clothing and footwear (women's clothing). The total consumer expenditure increased by 0.6% compared to that in the same period of the previous year. The increase in the period from June to September was small as a reaction to the upward trend in the first half of the year and the stagnated improvement of consumer mind

In the period from October to December, consumer expenditure increased in the transportation and communication sector due to more purchases of automobiles that were resulted from the last-minute demand before the increase of consumption tax rate. However, it decreased from the same period of the previous year in all other items and the total consumer expenditure decreased by 1.7% compared to the same period of the previous year.

In the period from January to March 2014, there was an upward trend in the last-minute demand before the increase of consumption tax rate. The consumer expenditure rose in furniture and household products (durable household goods), housing (facility maintenance and improvement) and transportation and communication (automobiles and related products) and the total consumer expenditure increased by 1.7% compared to the same period of the previous year.