(MaceNews) – Japanese retail sales came in firmer than expected in September but they still posted the second straight year-on-year drop as Covid-19 restrictions remained in place until the end of the month and supply chain disruptions choked new car deliveries, data released Thursday by the Ministry of Economy, Trade and Industry showed.
The ministry maintained its assessment that retail sales are “flat.”
The key points from the METI’s Current Survey of Commerce:
* Retail sales fell a preliminary 0.6% on the year in September after a 3.2% fall in August, which was caused by a resurgence in coronavirus cases and stormy weather. The latest figure was stronger than the median economist forecast for a 2.3% drop. 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 rebounded 2.7% on a seasonally adjusted basis in September after falling a revised 4.0% in August and rising 1.0% in July. The three-month moving average edged down 0.1% from the previous three-month period in September after being flat in August and climbing 1.3% in July.
* Motor vehicle sales fell 12.5% in September, marking the first year-over-year drop in 12 months after rising 1.4% in August. Industry data released earlier this month showed sales of new vehicles including 660-cc engine light vehicles plunged more than 30% on year in September after a 2% dip in August as supply chain disruptions have forced Toyota and other carmakers to reduce output and shipments.
* Fuel sales continued to grow at a relatively high pace of 16.4% on year in September after rising 12.6% in August but it was much slower than a 27.8% rise in July. Sales of food and beverages, which has a large share in retail sales, rebounded 2.2% after falling 1.1% in August and rising 2.4 in July. Apparel sales, a volatile item in recent months, gained 2.5% after slumping 12.2% in August. Machines and equipment (consumer electronics, etc.) dipped 4.5% for a fourth straight year-over-year fall but the pace of decline was slower than 12.7% seen the previous month.
* Industry data released this week showed department store sales dipped 4.3% on year in September, the second consecutive drop after a 11.7% fall in August and a 4.2% gain in July. The latest sales figure was 33.6% below the pre-pandemic level seen in September 2019. The Japan Department Stores Association noted that sales in some areas picked up in the second half of the month, thanks to solid pandemic-era demand for food and beverages consumed at home, wealthy shoppers’ strong appetite for luxurious goods and special events for premium customers.