Japanese retail sales grew the most in 5-1/2 years in September, boosted by consumers accelerating spending to beat a national sales tax hike that kicked in this month, raising some concerns about a subsequent pullback in demand in the coming months. Japan implemented sales tax hike to 10% from 8% on Oct. 1, in a move seen as crucial for fixing the industrial world's heaviest public debt at more than twice the size of its economy. But some analysts worry the twice-delayed tax hike could tip the economy into recession.
Retail sales jumped 9.1% in September from a year before, boosted by increased demand for cars, household appliances, cosmetics and clothing, data by the trade ministry showed on Wednesday. It handily beat a 6.9% gain expected by economists in a Reuters poll, posting the fastest annual growth since March 2014 when retail sales jumped 11% one month before the previous tax hike.
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