Japan’s Retail Sales Drop By Most In Nearly Two Years In May

Japanese retail sales fell in May by the most in nearly two years, pointing to weaker consumption that could restrain any rebound in the economy following a contraction in the first quarter. Weak retail sales, despite a string of national holidays early in the month, underscore that strong consumption has yet to take hold in Japan. That’s holding back the export-dependent economy. After a 2 percent surge in March, wage gains fell back to trend in April with a moderate 0.8 percent increase. That means consumers don’t have much extra free cash for discretionary spending. Read more at Bloomberg.