Japan Retail Sales YoY

Retail sales in Japan increased by 2.2% year-on-year in May 2025, down from an upwardly revised 3.5% rise in the previous month and below market expectations of 2.7% growth. This marked the 38th consecutive month of retail sales growth, but the slowest pace since February, with rising wages continuing to support consumption. Sales increased for clothing & personal goods (7.2%), machinery & equipment (5.8%), pharmaceuticals & cosmetics (4.6%), other retailers (4.4%), automobiles (2.4%), non-store retailers (1.4%), and food & beverages (1.4%). In contrast, sales declined at department stores (-6.1%), while fuel sales were flat. On a monthly basis, retail sales fell by 0.2% in May, reversing an upwardly revised 0.7% gain in April. This marked the second monthly decline so far this year.