Japan’s Household Spending Falls in Blow for Shrinking Economy

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.

Outlays by households, adjusted for inflation, fell 0.1% from a year earlier, the Ministry of Internal Affairs and Communications reported Friday. The result compared with the median economist estimate of a 1.5% gain. The decline was led by health care and miscellaneous spending, while outlays jumped 10.9% for housing.