Japan's retail sales fell 4.1% in June from May, the steepest monthly drop since April 2021

Japan's Ministry of Economy, Trade and Industry (METI) reported that retail sales rose 0.5% year on year in June 2026, slowing sharply from a downwardly revised 5.0% increase the previous month and missing market expectations of 3.1%. It was the fourth straight month of growth but the softest since February. The data was published on Thursday 30 July 2026.

Among categories, only automobiles (up 16.6%) and clothing and personal goods (up 14.8%) grew. Turnover fell for fuel (down 3.3%), machinery and equipment (down 1.7%), department stores (down 1.1%), other retail goods (down 0.7%), food and beverages (down 0.5%), non-store retail (down 0.4%) and pharmaceuticals and cosmetics (down 0.2%).

On a monthly basis retail sales fell 4.1%, the first monthly decline in four months and the steepest drop since April 2021. The figures suggest Japanese household consumption has lost momentum under persistent inflation and cautious spending.