Japan’s retail sales dropped for the first time in four months in September, the Ministry of Economy, Trade and Industry reported Monday.
Retail sales fell 0.2 percent month-on-month, in line with expectations but reversed a 0.9 percent rise in August.
The drop in retail sales in September suggests that consumer spending fell yet again in the third quarter, said Marcel Thieliant, an economist at Capital Economics. That is one reason to expect GDP to contract in third quarter.
On a yearly basis, retail sales growth eased to 2.1 percent in September from 2.7 percent in August. The annual rate also matched economists’ expectations.