By Max Sato
(MaceNews) – Japanese retail sales posted the first year-on-year rise in three months in October as fuel prices continued going up and the government lifted its Covid-19 state of emergency restrictions on Oct. 1, data released Monday by the Ministry of Economy, Trade and Industry showed.
The METI maintained its assessment that retail sales are “flat.”
The key points from the METI’s Current Survey of Commerce:
- Retail sales rose a preliminary 0.9% on the year last month after a revised 0.5% fall in September, led by solid demand for food and beverages as well as medicine and cosmetics. The latest figure came in softer than the median economist forecast for a 1.1% rise. Earlier, the pace of growth hit a peak of 11.9% in April in reaction to last year’s weak consumer spending during the first wave of the pandemic.
- On the month, retail sales rose 1.1% on a seasonally adjusted basis in October after rebounding a revised 2.8% in September and falling 4.0% in August. The increase was seen in all categories except for automobile sales, which posted a second straight monthly decline due to supply constraints. The three-month moving average of retail sales dipped 0.1% from the previous three-month period in October after a 0.1% drop (revised from a 0.1% rise) in September and being flat in August.
- Motor vehicle sales fell 19.5% in October, marking the second straight year-over-year drop after falling 12.6% in October and rising 1.4% in August. Industry data released earlier this month showed sales of new vehicles including 660-cc engine light vehicles slumped 31% on year in October as supply chain disruptions have forced Toyota and other carmakers to reduce output and shipments.
- Fuel sales continued to grow at a high pace of 25.9% on year in October after rising 16.6% in September but slowing from a 27.8% rise in July.
- Sales of food and beverages, which hold a large share in retail sales, rose 3.7% after rebounding 2.3% the previous month. Apparel sales, a volatile item in recent months, fell 2.0% after gaining 2.3% in September and slumping 12.2% in August. Machines and equipment (consumer electronics, etc.) rose 2.2% for the first year-over-year gain in five months following a 4.2% drop the previous month.
- Industry data released this week showed department store sales rebounded 2.9% on year in October, marking the first rise in three months after falling 4.3% in September. They were now 1.3% above the pre-pandemic level seen in October 2019. More people went shopping for traveling goods, shoes and accessories after the government lifted Covid restrictions. The Japan Department Stores Association said demand for high-end goods remained strong and low temperatures boosted sales of autumn and winter clothing. Demand for food and beverages consumed at home also continued to be solid, it added.
Contact this reporter: max@macenews.com
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