Thursday, July 22, 2010

May - Growth in Japan retail sales slackens

Japan's retail sales expanded for the fifth straight month in May, though growth in spending lost momentum as government stimulus measures fade.

Retail sales rose 2.8 per cent from the same month a year earlier, the government said Monday.

The result compares with gains of almost 5 per cent in both March and April and marks the slowest growth since January.

Compared with the previous month, retails sales in May fell a seasonally adjusted 2 per cent in the first decline in five months.

Autos and household machinery sales were particularly weak, reflecting the waning effects of consumer incentives for cars and energy-efficient home appliances.

Despite the latest figure, economists say they expect consumer spending to stay solid in the months ahead as Japan's economy improves.

Robust exports have led to higher corporate profits and factory production, which is gradually filtering down to workers and households.

"Looking ahead, we believe that underlying trend of consumption will remain firm with a gradual improvement in labour market and wages," said Masamichi Adachi, senior economist at JPMorgan Securities Japan, in a note to clients.

Sales at large retail stores fell 4 per cent from a year earlier, after adjusting for the change in the number of stores, according to the Ministry of Economy, Trade and Industry.


http://news.smh.com.au/breaking-news-business/growth-in-japan-retail-sales-slackens-20100628-ze41.html

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