Japan retail sales rose a healthy three per cent in May – marking the second consecutive monthly gain after a year of stagnancy or decline.

Data from the Ministry of Economy, Trade and Industry, shows consumers are relaxing their purse strings with sales at large retailers rising 5.3 per cent year on year on a same stores basis.

Retail sales were depressed following the implementation of a sales tax increase on April 1 last year.

Food, clothing and home electronics were the major performers in May.

In March, retail sales fell nine per cent, although that was largely due to an irregular March 2014 when consumers brought forward spending prior to a sales tax increase on April 1.

The Bank of Japan says the retail figures show consumers are more confident, easing the pressure on the bank to prolong a stimulus program.