–METI Upgrades View: Retail Sales Showing Signs of Pickup Vs. Being Flat
–Shoppers Flock to Department Stores; Clothing Up on Summer Weather
–High Fuel Costs Prop Up Retail Sales; Supply Delays Keep Auto Sales Down
By Max Sato
(MaceNews) – Japanese retail sales in April posted solid gains for the second straight month both on the year and month as the end of strict Covid public health rules in late March encouraged more people to visit stores and early summer weather boosted demand for spring and summer clothing, data released Tuesday by the Ministry of Economy, Trade and Industry showed.
Global semiconductor shortages continued to delay shipments of vehicles, leaving new car sales down, but sales of machinery and equipment rebounded despite supply shortages that have been made worse by Chinese lockdowns.
The key points from the METI’s Current Survey of Commerce:
- Retail sales rose a preliminary 2.9% on the year in April after rising 0.7% (revised down from a 0.9% rise) in March and falling 0.9% in February, when the Omicron variant caused the worst spike in Covid cases during the pandemic. It was firmer than the median economist forecast of a 2.6% rise.
- Automobiles remained weak (down 8.5% in April vs. down 6.3% in March). Department store sales marked the second straight gain (up 8.0% vs. up 1.9%) and sales of apparel and accessories jumped (up 9.5% vs. down 7.2%). Sales of fuels continue to soar (up 13.9% vs. up 15.5%) on rising energy prices. Demand for medicine and cosmetics remained solid (up 1.9% vs. 3.9%). Sales of machinery and equipment (consumer electronics) marked the first year-on-year rise in six months (up 1.6% vs. down 3.3%).
- On the month, retail sales rose 0.8% on a seasonally adjusted basis in April after jumping 1.7% (revised down from a 2.0% rise) in March, which was the first rise in four months after falling 0.9% in February. The three-month moving average in adjusted sales rose 0.5% in April after being flat in March and dipping 0.7% in February.
- The ministry upgraded its view, saying retail sales are “showing signs of a pickup,” instead of being “flat.” It only downgraded its assessment in February (for January data) from its previous statement that sales were “showing signs of a pickup.”
- Industry data released last week showed department store sales marked the second straight year-on-year rise in April, up 19.0%, after rising 4.6% in March, slipping 0.7% in February and jumping 15.6% in January. The Japan Department Stores Association reported that the easing of Covid restrictions drew more shoppers and higher temperatures boosted demand for spring and summer clothing. The Golden Week holidays from late to early May, the first without strict public healthy rules in three years, supported overall sales, it said.
Contact this reporter: max@macenews.com
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