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Tokyo - Household spending in Japan was down year-on-year for the fourth consecutive month in July after a controversial sales tax increase in April, the government said on Friday.
The average consumption expenditure per household stood at ¥280 293 for the month, down 5.9% from a year earlier, the Ministry of Internal Affairs and Communications said.
Tokyo raised the national sales tax in April to 8% from 5%, the first hike in 17 years, despite strong public opposition.
Bank of Japan governor Haruhiko Kuroda told a news conference in early August that the negative impact on the economy from the tax hike is "about to gradually decrease."
The bank has also said the economy was continuing to recover.
Household income declined 6.2% in July for the 10th straight month of fall, the ministry also said on Friday, despite reported pay raises at big corporations.
The average income stood at ¥555 276 for the month, the ministry said.
Analysts said wages were not raised at small and medium-sized companies, especially after the tax increase.
