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Japan’s year-over-year retail sales turned negative in February 2026, signaling a loss of momentum in consumer demand after a solid start to the year. According to data updated on 30 March 2026, retail sales fell by 0.2% compared with February a year earlier, following a 1.8% annual increase recorded in January 2026.
The figures mark a notable shift in the trajectory of Japan’s consumer sector. January’s 1.8% year-over-year rise had suggested a measure of resilience in household spending, but the move to a 0.2% decline in February underscores emerging headwinds for retailers and the broader economy. Both readings are calculated on a year-over-year basis, comparing each month’s performance to the same month in the previous year.
The February downturn in retail sales will be closely watched by market participants as an early indicator of whether softness in consumption is temporary or the start of a more persistent slowdown in domestic demand.
