Japan’s retail sales increased 4% year-on-year in July 2026, beating the 3% market expectation and accelerating from an upwardly revised 0.6% rise in June. The result marked the fourth straight month of growth, with motor-vehicle sales climbing 16.2%, compared with 16.3% in June. Sales also rebounded in machinery and equipment, general merchandise, medicine and toiletry stores, and food and beverages. Fabrics, apparel and accessories were the only category to record a decline, although the contraction narrowed to 6.6% from 14.4%. On a monthly basis, retail sales rose 2.4% after a downwardly revised 3.9% decline in June, the steepest monthly drop since April 2021.