Japanese retail sales have shown a third consecutive month of growth in September, a sign that the economy can withstand a further tax increase due to take place next year.

The 2.3% rise topped analysts’ expectations of a 0.6% rise, driven by increases in apparel, food and beverage sales.

"The recovery in consumer spending is gaining pace because demand is improving," said Shuji Tonouchi, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities.