Japan’s retail sales fell by 1.1% year-over-year, a significant drop from the previous increase of 0.4%. This marks a 1.5 percentage point decline, indicating a downturn in consumer spending.
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The actual retail sales figure sharply contrasts with analyst estimates of a 1.0% increase, suggesting weaker-than-expected consumer demand. This unexpected decline is likely to negatively impact consumer goods and retail stocks, as investors reassess growth prospects. The market reaction may be more sentiment-driven in the short term, while longer-term implications could influence monetary policy expectations.