Japan March Retail Sales Jumped For Eight Straight Month

Japan's retail sales rose in March as households paid more for gasoline and food, leaving them less to spend on clothing and furniture.

As per the news published by Market Watch, Japan retail sales climbed 1.1% in March, 2008 from a year earlier, after gaining 3.2% in February, 2008 and 1.3% in January, 2008, according to data released by the Ministry of Economy, Trade and Industry Monday.

Sales at fuel retailers rose 4.0% year-on-year, while sales at food and beverage retailers edged up 0.6%. Sales at large retail stores rose 0.2% after adjustments for the change in the number of stores, and rose 1.8% on an unadjusted basis. Sales at wholesalers rose 1.8%, while commercial sales (combined sales at wholesalers and retailers) were up 1.7%.

The figures reflect only sales in stores and shops, and excluded Internet retailing as well as spending at facilities such as gyms, restaurants and theaters.

“The gain in retail sales is a reflection of rising costs of fuel, not strong consumer spending,” said Mamoru Yamazaki, chief Japan economist at RBS Securities Japan Ltd. in Tokyo. “Consumption doesn't have momentum and downward risks are increasing as inflation outpaces wage growth.'”

This increase in retail sales is driven by household spending on food and gasoline. At the same time Japanese retail sales is supported by recent introduction of new models which increased the car sales. Sales of electronics also helped to climb the retail sale by increasing consumer appetite for flat-screen televisions.

According to industry expert the sales rise at fuel retailers may have weighed as investors probably waited for the gasoline surcharge expiration on April 1.

As per the research analyst at Arth Business Research, “The increase in retail sales is expected to go further up in the coming month due to increasing fuel prices. Also introduction of new models by the car manufacturing company and the increasing demand for electronic gadgets is expected to push up the retail sales”.

For more blogs and research reports plZ contact me at mr.jayantkumar@gmail.com