Retail sales in Japan advanced 2.3% year-on-year in September 2026, below market expectations for a 3.3% rise and easing from an upwardly revised 2.9% increase in the previous month, marking the slowest growth in three months. It was the seventh consecutive month of growth in retail sales, supported by government measures to ease cost-of-living pressures. The increase was mainly driven by a 15.6% jump in motor vehicle sales. Sales also grew in department stores (2.7%), other retail goods (2.6%), food and beverages (1.4%), clothing and personal goods (1.3%), and non-store retail (0.4%). By contrast, sales fell for machinery and equipment (-5.7%), fuel (-3.0%), and pharmaceuticals and cosmetics (-0.2%). On a monthly basis, retail sales dropped 0.7% in September, following a revised 0.9% fall in August, marking the second consecutive monthly decline.