Japan household spending decreased for the third straight month in December, data from the Ministry of Internal Affairs and Communications showed Friday.
Household spending decreased 4.8 percent year-on-year in December, following a 2.0 percent decline in November. The decline was bigger than the forecast of -1.7 percent.
After the sales tax hike, household spending dropped 5.1 percent in October, which was the biggest fall since March 2016.
On a monthly basis, household consumption grew 1.7 percent in December, after a 2.6 percent increase in the prior month.
Elsewhere, data from Ministry of Health, Labor and Welfare showed that total cash earnings remained flat on year in December, after a revised 0.1 percent rise in November. Economists had expected a 0.1 percent decrease.
Contractual gross earnings edged up 0.1 percent in December, while special cash earnings declined by 0.2 percent.
Real wages declined 0.9 percent in December, following a revised 0.6 percent fall in the previous month. This was in line with economists' expectations.