Retail sales rose more than forecast in May, a sign that consumer spending will help sustain a rebound in the world's third-largest economy.
Sales advanced 3.6 percent from a year earlier, the trade ministry said Thursday. The median estimate of 13 economists surveyed by Bloomberg News was for a 2.9 percent increase. From a month earlier, sales gained 0.7 percent.
Rebuilding from last year's earthquake and government incentives to bolster purchases of cars have boosted consumption. The government aims to sustain growth as Europe's debt crisis and strength in the yen restrain exporters' sales and profits.
"Consumption remains solid," said Azusa Kato, an economist at BNP Paribas. Demand in quake-affected areas in the northeast have also been bolstering retail sales, she said.