Japan's Household Spending Falls in April

Japan's household spending unexpectedly declined in April as elevated inflation deterred discretionary spending, in a worrisome sign for policymakers after the economy began contracting even before US tariff measures fully kicked in.

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Outlays by households, adjusted for inflation, fell 0.1 percent from a year earlier, the Ministry of Internal Affairs and Communications reported on June 6. The result was lower than the median economist estimate of a 1.5 percent gain.

The decline was led by health-care and miscellaneous spending, while outlays jumped 10.9 percent for housing.

The importance of consumer spending as an engine of growth in Japan has increased as US President Donald Trump's tariff campaign deals a blow to factory output and exports. Extra duties on steel and aluminum took effect in March, with tariffs on autos and a broad tax on other products starting in April.