Tokyo, Dec 7 (IANS): Japan's household expenditures dropped a real year-on-year 0.6 per cent in October, down for the third straight month, due to a plunge in purchases of furniture and other household goods, government data revealed on Tuesday.

The average consumption of households with at least two people, regarded as a key indicator of private consumption which accounts for more than half of Japan's gross domestic product, stood at 281,996 yen ($2,500), according to the Ministry of Internal Affairs and Communications.

However, the speed of decrease on year slowed down from a month earlier as spending on dining out and travelling began to rebound after the Covid-19 state of emergency was completely lifted on October 1, Xinhua news agency quoted a government official as saying.

People were requested to refrain from going outside while restaurants and bars were asked to close earlier and not to serve alcohol during the state of emergency.

By component, outlays for household amenities and furniture declined 16.7 per cent from the previous year, as the government had handed out 100,000 yen per person in cash last year, which lifted purchases of such items.

Expenditures on culture and recreation fell 5.4 per cent, including domestic package tours and accommodation, as the "Go To Travel" subsidy program by the government last year had promoted the travel demand.

Meanwhile, transportation expenses including air tickets and railway fares saw a 15.3 per cent rise as railway operator data revealed short-distance travel increased after the emergency was lifted, the official said.

On a monthly basis, spending in October grew a seasonally adjusted 3.4 per cent from a month earlier, following a 5.0 per cent rise in September, increasing for the second successive month.

Average monthly income of salaried households with two or more people in October gained a real year-on-year 0.4 per cent to 549,269 yen.