Japan's household spending fell for a fourth consecutive month in March despite continued wage growth

Household spending adjusted for inflation declined 2.9% in March from a year earlier, according to the Internal Affairs and Communications Ministry, exceeding economists' forecast of a 1.3% drop. On a seasonally adjusted basis, spending fell 1.3% compared with February.

Transportation and communications drove the largest decline in March spending, while food, utilities, and clothing also contributed to the drop. Households increased outlays on essentials such as medical care and housing.

The decline marks the fourth consecutive month of falling household spending, highlighting fragility in consumption despite wage growth continuing.