Household Income, Consumption Fall
By Yoon Ja-young
Staff Reporter
Both household income and consumption fell in the second quarter this year. The double plunge has continued for three quarters in a row, and nominal income fell for the first time. The low-income households were especially worse off.
According to the National Statistical Office, the monthly real income of households stood at 2.9 million won on average for the second quarter, falling 2.8 percent from a year ago.
The real consumption, meanwhile, fell by 1.1 percent to 1.9 million won.
The nominal income recorded 3.3 million won, down 0.1 percent from a year ago and marking the first decrease ever. "The household income recorded minus growth for the first time since the statistical office started compiling the data, but consumption slowed down its pace of decrease.
It should be helpful for the economic recovery,'' the spokesperson at the statistical office said.
The fall in household income was due in significant part to the plunge in income from assets, which dropped by 23.1 percent. Labor income grew only 1.4 percent, marking the smallest growth ever. It grew 10 percent in the first quarter last year, but has been slowing in growth each quarter.
Income that households earned from business also dropped by 1.1 percent.
Regarding consumption, households made big cuts in spending on liquor and cigars, slashing the amount spent by 8.6 percent, while increasing spending in health and education.
The health spending soared by 22.5 percent, with each household spending 140,000 won a month on average. The statistical office attributed it to the rise in healthcare fees and increasing tooth implant surgeries. Spending in education expanded by 4.4 percent. Households increased spending in both public and private education.
The average disposable income stood at 2.7 million won, deceasing by 0.7 percent. The household surplus plunged 6.9 percent to 636,000 won, contrasting with the first quarter, when it grew by 14.6 percent.
The statistics showed that the gap is widening between the rich and the poor.
The top 20 percent of the income bracket had 5.4 million won in disposable income, and their average surplus amounted to 2.1 million won. The bottom 20 percent, meanwhile, was in 382,000 won of deficit, on average, as their disposable incomes were smaller than the consumption.