— METI Revises Up View: Retail Sales Showing ‘Signs of Pickup’ Vs. ‘Flat’
— Vehicles Sales Drop Smaller As Supply Chain Constraints Alleviated
By Max Sato
(MaceNews) – Japanese retail sales posted a second straight year-on-year rise in November, with the pace of increase accelerating from October as fuel prices continued rising and people went shopping more often after the government eased Covid restrictions, data released Monday by the Ministry of Economy, Trade and Industry showed.
The Ministry of Economy, Trade and Industry updated its assessment, saying retail sales are “showing signs of a pickup.” Previously, it had said sales were “flat.”
The key points from the METI’s Current Survey of Commerce:
* Retail sales rose a preliminary 1.9% on the year last month after rising 0.9% in October and falling 0.5% in September, led by higher fuel prices and continued solid demand for food and beverages as well as medicine and cosmetics. The latest figure came in firmer than the median economist forecast for a 1.7% rise. Earlier, the pace of growth hit a peak of 11.9% in April 2021 in reaction to last year’s weak consumer spending during the first wave of the pandemic.
* On the month, retail sales rose 1.2% on a seasonally adjusted basis in November for the third rise in a row after gaining 1.0% in October and 2.8% in September. The increase was seen in six of the nine categories. Automobile sales posted a third straight monthly decline due to supply bottlenecks, although delays in parts supply from pandemic-hit Southeast Asian factories have eased.
* The three-month moving average of retail sales rebounded 1.7% in November from the previous three-month period after a 0.1% drop in the previous two months and being flat in August.
* Motor vehicle sales fell 14.1% in November, marking the third straight year-over-year drop after falling 19.6% in October. Industry data released earlier this month showed sales of new vehicles including 660-cc engine light vehicles dipped 14% on year in November, with the pace of decrease decelerating from a 31% slump in October, as supply chain disruptions eased somewhat.
* Fuel sales continued to grow at a high pace of 29.2% on year in November for the nine consecutive increase after rising 25.8% in October and 16.6% in September.
* Sales of food and beverages, which hold a large share in retail sales, rose 4.1% for the third rise in a row after rising 3.6% the previous month. Apparel sales, a volatile item in recent months, dipped 2.2% after falling 1.9% in October and gaining 2.3% in September. Machines and equipment (consumer electronics, etc.) slumped 10.6% for the first drop in two months following a 2.5% rise the previous month.
* Industry data released this month showed department store sales rose a solid 8.1% on year in November, marking the second straight gain after rebounding 2.9% in October and falling 4.3% in September. The Japan Department Stores Association reported premium customers were encouraged to go shopping amid fewer Covid cases. Sales of luxury goods remained strong and low temperatures supported demand for winter clothing, it said.