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* June household spending -1.2 pct yr/yr vs f'cast -1.6 pct
* Figures come ahead of Q2 GDP data, growth seen rebounding
* Soft consumption, trade woes cloud Japan's growth outlook
TOKYO, Aug 7 (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 annualized 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)