Japan March household spending falls 2.9 percent annually

Japan household spending fell 2.9% year-on-year in March, extending a contraction for the fourth consecutive month. The decline more than doubled the 1.3% drop expected by economists in a median market forecast. This consumption weakness complicates the Bank of Japan's decision on whether to raise interest rates in June.

Internal affairs ministry data released Tuesday morning showed a 1.3% seasonally adjusted month-on-month drop in spending. This result missed analyst estimates for a 0.6% increase during the period.