Japan's department store sales rose in December as consumers used increased disposable income from winter bonuses to make purchases in the festive season, the Japan Department Stores Association said in a report Friday.

According to the association, sales on a same-store basis in the recording period increased for a second straight month by 1.7 percent from a year earlier to 725.7 billion yen, which is also attributed to shoppers taking advantage of prices ahead of the sales tax hike from 5-8 percent this April.

The association added that purchases of luxury goods, including jewelry, as well as furniture increased, reflecting consumers' beliefs that, in line with the government's latest assessment, the economy here is recovering.

For 2013, the association said that sales rose on a year-on- year basis by 1.2 percent, marking the first rise in 16 years on an all-store basis, with sales totaling 6,217.1 billion yen, as the government's economic policies, including aggressive monetary easing, tax breaks for businesses and ultra-low central bank interest rates, spurred both corporate and consumer spending.

In addition and according to government reports Friday, there has been a distinct uptick in both consumer and capital spending in the months leading up to the April sales tax hike.

In its latest assessment of the economy, the government described it as "recovering moderately," as compared to previous statements describing the economy as "about to recover at a moderate pace."

The Japan Department Stores Association collects data from 85 firms operating 242 department stores that have been open to the public for a year or more.

The data is adjusted to facilitate comparisons on a same-store basis and is widely regarded as a barometer of consumer sentiment nationwide.