people wearing masks stand outside a shop with infection prevention instructions on its window in harajuku shopping area amid the coronavirus disease covid19 outbreak in tokyo japan august 9 2021 reutersandroniki christodoulou tokyo march 11 reuters  japanese household spending rose for the first time in six months in january on a yearonyear basis largely because of weakness in the prior year even as the fast spread of the covid19 omicron variant likely weighed on consumption later in the month rising energy prices in the wake of russias invasion of ukraine in late february are also threatening to choke consumer and business spending in the importreliant economy analysts have trimmed their growth forecasts for japan with some projecting a contraction this quarter household spending rose 69 in january from a year earlier government data showed on friday versus economists median estimate of a 36 gain that followed a 02 drop in december the strong yearonyear reading reflected a 60 fall in january 2021 when covid19 state of emergency curbs were imposed a government official told a media briefing consumer spending on services such as restaurants hotels and transport led the annual growth while electricity and food items saw weaker demand in january the data showed to combat the rapid spread of the omicron coronavirus variant japan reinstated curbs on restaurant hours in about 70 of its areas later in the month read more nationwide infections peaked in early february at a daily level of over 100000 cases but curbs have been extended in some areas including the capital tokyo until later this month read more monthonmonth spending contracted 12 in january on a seasonally adjusted basis versus a forecast for a 30 loss in a reuters poll and after a 01 growth in the previous month the data showed the worlds thirdlargest economy posted annualised 46 growth in the final quarter of 2021 as pentup consumer spending emerged following a decline in coronavirus cases according to a revised official estimate this week read more but its recovery has been tepid and uneven compared with most other major economies leaving the bank of japan with little choice but to continue superloose monetary policy even as many of its peers begin dialling back emergency measures rolled out during the first year of the pandemic economists expect japans economy to remain flat or possibly contract in januarymarch with persistently weak domestic demand and the war in ukraine weighing on global growth read more