Japan’s retail sales rose for a third month in May, powered by strong wage gains and government subsidies to ease the cost of living.
Sales increased 1.9% after an upwardly revised gain in April, the economy ministry reported on Monday. The figure exceeded all estimates in a Bloomberg survey of economists. From a year earlier, sales rose 5.3%, compared with the consensus forecast of a 3% gain. The figures are not adjusted for inflation.
The broad advance was led by sales of vehicles, pharmaceuticals and cosmetics. Sales at department stores also climbed strongly from a year earlier, likely helped by robust tourist spending. Sales of seasonal appliances such as air conditioning nearly doubled from a year earlier, suggesting consumers rushed to beat an upcoming government policy that will tighten efficiency standards and ban models that don’t meet the new requirements.
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