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Reuters Published
November 29, 2025
Japan's retail sales rose for the first time in three months in October, though less than expected, data showed on Monday, a sign private consumption has yet to pick up strongly despite the easing of COVID-19 curbs amid a fragile economic recovery.
Following a larger-than-expected contraction in July-September, analysts expect the world's third-largest economy to rebound this quarter thanks to an upturn in household spending, while supply-side concerns still loom for export-reliant businesses.
Retail sales rose 0.9% in October from a year earlier, government data showed on Monday, versus the median market forecast for a 1.1% increase.
Compared with the previous month, retail sales grew 1.1% on a seasonally adjusted basis.
Japan has eased coronavirus restrictions on restaurant hours, large-scale events and border controls as infections have fallen dramatically and more than three-fourths of its population is fully vaccinated.
Private-sector statistics, however, had shown the comeback of consumer spending was gradual in October, and analysts said a full recovery in sectors hit hard by the pandemic such as face-to-face services will take longer time.
To boost Japan's lukewarm economic recovery, the government earlier this month announced a record $490 billion stimulus package, including cash payouts to households with children and subsidies to COVID-hit businesses.