Retail sales fell for the 10th consecutive month in June as the deteriorating job market led consumers to cut spending.
Retail sales fell 3 percent from a year earlier to ¥10.65 billion, the Ministry of Economy, Trade and Industry said Wednesday. The pace of decline accelerated for the first time since February, suggesting that government stimulus measures intended to boost spending have had a limited impact.
Large-scale outlets, including department stores and supermarkets, fared worse, with sales tumbling 5.1 percent for the 11th month of decline.
Recent signs indicate the economy is shaking off its steepest recession since World War II. Exports are rising, factories are boosting output and companies are forecasting better earnings this year.
But economists worry that lackluster domestic demand, which accounts for more than half of the economy, could send prices lower and undermine the nascent recovery.