Japan's retail sales rose 2.7% year over year to 13.052 trillion yen in August, according to preliminary data from the Ministry of Economy, Trade and Industry released Wednesday.

The increase slowed from 3.7% in July and missed the 3.3% forecast tracked by Investing.com, pointing to some moderation in consumer spending after a stronger start to the summer.

On a seasonally adjusted basis, retail sales fell 1.2% from July, following a 2.1% increase in the previous month. Broader commercial sales continued to grow from the previous year, with wholesale activity providing much of the support.

Spending patterns remained uneven. Auto sales posted strong growth, while clothing and personal-goods retailers saw weaker demand. Department stores and supermarkets recorded modest gains, while convenience-store sales were broadly steady.

The softer retail reading came alongside a pullback in industrial activity. Industrial production rose 3.4% year over year in August but fell 1.7% from July on a seasonally adjusted basis.

The monthly decline was led by motor vehicles, general-purpose and business-oriented machinery, and petroleum and coal products. Production machinery and some transport and chemical products provided support, cushioning the broader decline.

Shipments also fell from the previous month, while inventories edged lower. The data suggest manufacturers faced a softer month in August after production had expanded earlier in the summer.

Still, the outlook for factory activity points to a rebound. Manufacturers expect production to rise 3.2% in September and another 3.1% in October, according to METI's production forecast survey.

Taken together, the figures show an economy still expanding across both consumer and industrial activity, but with August momentum losing some steam.