Retail Sales in Japan Fell Off in May

The retail sales growth in Japan had slowed down in May versus the previous year, which means that consumers remain uncertain on their expenses. Last year, retail sales were able to gain 2 percent in May on the back of 3.2 percent increase in April.

The surge was mainly driven by motor vehicles, fuel, medicine and toiletries based on the economy ministry of Japan. Compared with the previous month, sales dropped by 1.6 percent from April after a 1.4 percent increase.

The Japanese economy sustained a five-quarter growth period, influenced by increasing exports and stronger domestic demand. However, the private expenditure weakened due to stagnant wages and without rebound salary as consumers are unlikely to spend a lot more.

The latest consumption index accelerated by 3.7 percent in May 2016 and decline from April. The statistics were based on  JCB Consumption Now index that utilizes credit card data. Yasutoshi Nagai, chief economist at Daiwa Securities based in Tokyo, said: "It's hard to expect consumption to be a driver of growth,". He added that "You see many stores are cutting prices because they can't sell their goods."