JAPAN retail sales climbed more than expected in June due to increased spending on fuel, appliances and cosmetics, in a positive sign that households are growing more confident in the economy.

The 1.8-percent annual increase in retail sales in June was more than the median estimate for a 1.6-percent annual gain and follows a 0.6-percent annual increase in May. The results for June showed retail sales have risen for eight consecutive months.

On a seasonally-adjusted basis, retail sales also gained 1.5 percent in June versus a 1.7-percent decline in the previous month, data from the trade ministry showed yesterday.

Japan’s economy is expected to bounce back in April-June from the first-quarter contraction that ended the longest growth run since the 1980s bubble economy.

However, the gain in retail sales is unlikely to provide much comfort for the Bank of Japan, which is struggling with low inflation and the side effects of its radical monetary easing program.

(SD-Agencies)