Japan economic update: Retail sales surge 1.7% on stimulus while industrial output stumbles
Japan's economy showed mixed signals in March 2026, with retail sales rising 1.7% year-over-year, driven by government stimulus, while industrial output fell 0.5% month-on-month. Retail sales exceeded expectations, rebounding from a previous decline, while industrial production showed annual growth of 2.3%. The Nikkei 225 Index dropped 1%, and the yen weakened past 160 per dollar, marking its lowest level since July 2024.
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