Household spending in July fell 3.7 pct from a year earlier, the fourth straight monthly decline, the Ministry of Internal Affairs and Communications reported. From the previous month, household spending fell a seasonally adjusted 4.2 pct, the second consecutive monthly drop. Household spending averaged 293,839 yen in July. The results had been expected, after the ministry reported last week that spending by households headed by salaried employees, which accounts for about 60 pct of overall household spending, fell by a real 3.3 pct in July from a year earlier. On a nominal basis, overall household spending in June dropped 4.0 pct from a year earlier. Because there is deflation in Japan, many economists say spending on a nominal basis, or spending unadjusted for changes in prices, is a more important gauge of spending because it reflects the actual impact on corporate sales and profits.