2026.08.3100:05:14UTC+00Japan Retail Sales Growth Tops Forecasts

Japan’s retail sales rose 4% year-on-year in July 2026, beating market expectations of a 3% increase and accelerating from an upwardly revised 0.6% gain in June. This marked the fourth consecutive month of growth in retail activity, largely supported by a 16.2% jump in motor vehicle sales (after 16.3% in June).

Sales also rebounded across several categories: machinery and equipment rose 6.3% (after a 1.9% decline), general merchandise increased 3.1% (vs a 1.1% fall), medicine and toiletry stores were up 1.6% (vs a 0.1% drop), and food and beverages gained 1.1% (vs a 0.5% decline). The only major category to record a decrease was fabrics, apparel, and accessories, where turnover fell 6.6%, though this was a smaller drop than June’s 14.4% contraction.

On a month-on-month basis, retail sales climbed 2.4% in July, rebounding from a downwardly revised 3.9% decline in June, which had been the sharpest monthly fall since April 2021.