By Leika Kihara
TOKYO (Reuters) - Japan's household spending fell 1.2 percent in June from a year earlier, extending its annual declines for a fifth month, a sign the economy may lose support from domestic demand as escalating global trade tensions cloud the outlook for exports.
The figure comes ahead of Friday's release of second-quarter gross domestic product (GDP) data, which will likely show the economy expanded an annualised 1.4 percent after contracting in the previous quarter.
The decrease in household spending compared with a median market forecast of a 1.6 percent fall and followed a 3.9 percent drop in May, government data showed on Tuesday.
Private consumption has been a soft spot in the economy as slow wage growth prevents households from loosening their purse strings, in turn discouraging companies from hiking prices and keeping the Bank of Japan's 2 percent inflation target elusive.
(Reporting by Leika Kihara; Editing by Sam Holmes)
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