According to a Nikkei survey, more Japanese consumers are choosing to save rather than spend as cuts on summer bonus payment constrict household budgets.
The survey, conducted in late May, had 1,184 respondents. About 47% said the summer bonus will remain the same as the previous one, 39% anticipate a decrease, while 5% expect no bonus at all. Only 9% said their summer bonus will increase.
Most respondents said they’ll set their bonuses aside, while 21% will use them for daily expenses. Around 12% plan to use them for travel and leisure.
Amid renewed pressure on the government to address its huge public debt, the looming consumption tax hike will likely force consumers to save more and cut down household expenses.
This underlines Japanese consumers’ financial habits with regards to saving: 48% says they will continue money-saving practices, 23% will try to watch finances more closely, while 10% found it hard to budget expenses accordingly. Demand for energy-saving products rose, with 54% saying that purchasing such products will help curb household expenses.