Households withhold spending on clothing despite income increase
By KH디지털2Published : Feb. 25, 2015 - 10:44
South Korean households spent less on buying clothes and shoes last year, the first such fall on record, data indicated Wednesday, a trend economy watchers say reflect crimped spending.
According to Statistics Korea, a two-person household spent an average 169,000 won ($153) per month on clothes and shoes last year, down 0.1 percent from the year before. This is the first dip since recordkeeping began in 2003.
While the drop is miniscule in number, it comes against the backdrop of increased household income and a price hike in apparel.
Income increased an average 3.4 percent last year from the previous year, and household spending rose 2.8 percent on-year.
"Taking into account that consumer prices for clothes and shoes moved up last year, the dip is a sign that households consciously refrained from buying such items, which may reflect uncertainty about the future," an official at the statistics agency said.
He said that with the population becoming older, people may be trying to save up more and prioritize where they spend money.
People also spent less on buying communication-related devices and services, cigarettes and housing and utilities, data showed.
Communication spending was affected by the drop in calls and Internet fees, while housing outlays moved down on lower heating requirements.
On the other hand, the average transportation spending by households reached 334,000 won, up 8.6 percent. The annual increase is the steepest since 8.7 percent in 2011.
Spending on education also rose 0.4 percent on-year to 285,000 won per month. The increase is the first on-year rise since 2010.
Outlays in health rose 2.8 percent last year, with recreation and leisure spending jumping 5.6 percent on-year. (Yonhap)