Japan's Retail Sales Expand for 36th Month In March, Industrial Output Struggled to Advance

Akira Ito
30 Apr, 2025
Tokyo

Japan's indexes edged higher after investors returned from a one-day holiday and reviewed the latest economic data. 

The Nikkei 225 Stock Average increased 0.3%, and the Topix index edged up 0.5%, and investors turned cautious after retail sales and industrial output data fell short of expectations. 

Japan's retail sales rose 3.1% annually from a year ago in March, marking the 36th consecutive month of expansion.  

February's retail sales were downwardly revised to a 1.3% increase.

Retail sales have been on the upward trajectory for the last three years, supported by the rising wages after stagnating for more than two decades. 

On a monthly basis, retail sales decreased 1.2% from the previous month in March, reported the Ministry of Economy, Trade & Industry. 

Sales of apparel and personal goods soared 7.6%, automobile sales advanced 1.5%, machinery equipment sales increased 6.7%, and food & beverage sales rose 1.9%, but department store sales fell 1.25%. 

Japan's industrial output in March declined 1.1% from the previous month and fell 0.3% from a year ago, said the ministry in a separate report. 

Industrial production reversed from the 2.3% monthly increase in the previous month after motor vehicle production declined 5.9% from the 0.2% increase, and electric machinery and electronics equipment production fell by 4.4% from the rise of 1.1% in the previous month.  

Industrial output declined for the second month this year after tariff threats impacted overall demand. 

Investors looked ahead to the Bank of Japan's rate decisions on Thursday, and the central bank is widely anticipated to hold rates but trim its annual economic growth outlook. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average edged up 0.3% to 35,943.18, and the broader Topix advanced 0.5% to 2,662.59. 

Toyota Industries Corp. advanced 3.3% to ¥16,760.0, IHI Corp. edged down a fraction to ¥11,150.0, and Kawasaki Heavy Industries decreased 0.5% to ¥8,469.0. 

Mitsubishi UFJ Financial Group advanced 1.8% to ¥1,803.50, Sumitomo Mitsui Financial Group increased 1.3% to ¥3,400.0, and Mizuho Financial Group added 0.9% to ¥3,580.0.