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 strongest growth since November 2023, supported by 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% gain in April, which was the fastest increase in four months.