Japan June household spending falls 3 percent vs year ago

TOKYO (Reuters) - Japanese household spending fell less than expected in June, government data showed on Tuesday, in a sign that consumer spending is recovering after an increase in the national sales tax. The 3.0 percent year-on-year decrease compared with the median market forecast for a 3.8 percent decline. Spending rose 1.5 percent in June from the previous month in seasonally adjusted terms as households spent an average 272,791 yen (£1,590), the Ministry of Internal Affairs and Communications said. The median estimate was for a 2.2 percent month-on-month increase. The government raised the national sales tax to 8 percent from 5 percent on April 1 to pay for rising welfare costs. (Reporting by Stanley White; Editing by Chris Gallagher)