Japan sees weaker consumer spending, manufacturing in June

In this July 23, 2016, photo, a man looks at clothing on sale at a shop in Tokyo. Japan's central bank has opted for a modest expansion of its lavish monetary stimulus to help perk up sluggish growth and combat deflation. (AP Photo/Eugene Hoshiko) (The Associated Press)

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Governor of the Bank of Japan Haruhiko Kuroda arrives at its headquarters for a policy meeting in Tokyo Friday, July 29, 2016. Japan's central bank has opted for a modest expansion of its lavish monetary stimulus to help perk up sluggish growth and combat deflation. The Bank of Japan ended a policy meeting on Friday by announcing it will expand purchases of assets from financial institutions to help inject more cash into the economy and pursue its 2 percent inflation target. (Kyodo News via AP) (The Associated Press)

FILE - In this Nov. 17, 2015 file photo, a woman takes a look at orange on sale at a shop in Tokyo. Japan reported further signs of weakness in its economy in June, with industrial output and consumer spending falling from the year before. The data released Friday, July 29, 2016, were in line with expectations the central bank may follow the government's lead in opting for more stimulus at a policy meeting that ends Friday. (AP Photo/Eugene Hoshiko, File) (The Associated Press)

TOKYO – Japan reported further signs of weakness in its economy in June, with industrial output and consumer spending falling from the year before.

The data released Friday were in line with expectations the central bank may follow the government's lead in opting for more stimulus at a policy meeting that ends Friday.

Core inflation excluding volatile food prices dropped 0.5 percent from 0.4 percent in May. The Bank of Japan and government have made scant progress toward a 2 percent inflation goal set more than three year ago, partly due to the prolonged slump in crude oil prices.

Household spending fell 2.2 percent from a year earlier, while industrial output slipped 1.9 percent on an annual basis.

Earlier this week Prime Minister Shinzo Abe announced plans to propose 28 trillion yen ($267 billion) in spending initiatives to help support the sagging economic recovery.

Household incomes rose 0.3 percent in June, weak for a month when workers commonly receive bonuses.

Unemployment fell to 3.1 percent in June from 3.2 percent for the past several months. But tightness in the job market has not spilled into significant increases in wages that might help spur more consumer demand and encourage businesses to investment in the short of "virtuous cycle" Abe has been promising since he took office in late 2012.