Retail sales in the world’s third-largest economy rose an annual 0.9 percent in June, beating expectations for a 0.5 percent rise but still slowing sharply from a 3 percent spike in the previous month, government data showed on Wednesday.
“The drop in retail sales in June adds to the evidence that consumer spending fell last quarter,” said Marcel Thieliant, Japan economist at Capital Economics, in a note.
“What’s more, sales values have been flattered by a rebound in gasoline prices. Retail gasoline prices have risen by 6 percent since their January peak. Since fuel sales account for around 8 percent of total retail sales, this has lifted aggregate sales by around 0.5 percent.”