Retail sales in Japan increased 5.3% year-on-year in May 2026, accelerating from an upwardly revised 2.8% rise in the previous month and surpassing market expectations for a 3.2% gain. It was the third consecutive month of growth and the fastest pace since November 2023, supported by strong wage gains and government measures, including a stimulus package aimed at boosting consumption and easing price pressures. Sales grew in automobiles (23.7%), machinery and equipment (14.5%), other retail goods (8.9%), department stores (6.9%), pharmaceuticals and cosmetics (2.8%), and food and beverages (2.4%). In contrast, sales fell in non-store retail (-4.2%), fuel (-2.6%), and clothing and personal goods (-0.7%). On a monthly basis, retail sales rose 1.9%, easing from an upwardly revised 2.1% increase in April, which was the fastest increase in four months.

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