Japanese retail sales miss forecast in August

Japanese retail sales rose less than expected in August, figures released overnight on Tuesday showed.

According to the country’s Ministry of Economy, Trade and Industry, retail sales grew 0.8% year-on-year last month, compared with a 1.8% gain in July and with analysts’ forecast for a 1.2% increase.

On a month-on-month basis, sales were flat, falling short of expectations for a 0.5% gain and down from the previous month’s 1.4% increase.

However, there was better news from large-scale retailers, which registered a 1.8% year-on-year increase in sales, better than the 1.3% gain analysts had expected and only slightly below the 2.1% hike registered in July.

“The disappointing data perhaps strengthens the case for more policy stimulus in Japan,” said analysts at Deutsche Bank.