Japan's household consumption expenditures fell 3.1% in real terms in August from a year earlier, as spending on clothing, education and household goods weakened, according to government data released Friday.

The pace of the drop eased from the 3.6% contraction the previous month and was better than the market consensus forecast of a 3.5% decline, according to Investing.com.

Average monthly consumption expenditure for households of two or more people stood at 310,975 yen. Spending fell 1% in nominal terms, while the inflation-adjusted decline was steeper.

Outlays on clothing and footwear dropped 8.7% in real terms, while education spending fell 12.3%. Furniture and household utensils declined 6.3%, and fuel, light and water charges fell 5.2%.

Housing expenditure decreased in real terms, while spending on culture and recreation fell 4.3%. Food spending, the largest category at 104,220 yen, declined in real terms despite a nominal increase.

Transportation and communication was among the few categories to record real growth, rising from the previous year. Medical care spending fell 1.9% in real terms.

For workers' households, average monthly income rose nominally to 616,704 yen but fell 0.9% in real terms. Disposable income rose 1.4% nominally to 513,617 yen but fell 0.8% after adjusting for inflation.

Workers' household consumption expenditure fell in real terms to 331,134 yen, following a 4.7% nominal decline.

The average propensity to consume, which measures the share of disposable income spent on consumption, stood at 64.5%, down 4.1 percentage points from a year earlier.

The figures point to continued pressure on household demand, with real income and spending both declining despite nominal income growth.