Japan retail sales cause concern
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Japan retail sales in August rose 0.8 per cent according to official data released on Wednesday.
That was a full 0.4 per cent – or one third – below market expectations, fuelling concerns about the state of the nation’s fragile economy.
The figure from the Ministry of Economy, Trade and Industry followed a healthier 1.8 per cent increase in July.
Once seasonally adjusted, retail sales were flat in August – worse than the anticipated 0.5 per cent increase, and well down on the 1.4 per cent rise of July.
‘Large retailers’ reported sales were up 1.8 per cent year on year, near the 2.1 per cent of July and ahead of the forecast 1.3 per cent.
The only bright news on Japan’s retail sales front in recent month has been the increased spending by Mainland Chinese tourists, opting to take vacations there or Europe instead of their more traditional destination, Hong Kong.
Questions & Answers
Q.How did August retail sales compare to market expectations?
How did August retail sales compare to market expectations?
Official data showed a 0.8 per cent rise, which was 0.4 per cent below market expectations. This contributed to concerns about Japan's economy.
Q.What was the seasonally adjusted retail sales figure for August?
What was the seasonally adjusted retail sales figure for August?
Once seasonally adjusted, retail sales were flat in August. This was worse than the anticipated 0.5 per cent increase for the month.
Q.Did large retailers perform better than the overall retail sales figures?
Did large retailers perform better than the overall retail sales figures?
Yes, 'large retailers' reported sales were up 1.8 per cent year on year. This was ahead of their forecast of 1.3 per cent.
Q.What was the one positive aspect mentioned regarding recent retail sales in Japan?
What was the one positive aspect mentioned regarding recent retail sales in Japan?
The only bright news recently has been increased spending by Mainland Chinese tourists. They are choosing to vacation in Japan or Europe instead of Hong Kong.
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