Japan Retail Sales YoY

Retail sales in Japan rose by 6.3% yoy in January 2023, topping market forecasts of 4.0% and accelerating from a 3.8% growth a month earlier. This was the 11th straight month of increase in retail trade and the steepest pace since May 2021, as consumption strengthened further as the economy fully reopened following the removal of all pandemic restrictions. Sales growth accelerated for general merchandise (8.9% vs 3.9% in December), fashion apparel & accessories (4.8% vs 0.8%), food & beverages (5.4% vs 3.2%), and others (9.9% vs 9.4%). Also, sales of motor vehicles picked up sharply (19.3% vs 0.4%). In addition, sales of machinery & equipment fell at a slower rate (-3.2% vs -3.7%). Meantime, sales moderated for both fuel (0.7% vs 3.0%) and medicine & toiletry stores (7.5% vs 15.9%). On a monthly basis, retail trade increased by 1.9% in January, the second consecutive month of rise, after a 1.1% gain in December.