The contraction in Japan’s retail sales slowed in April after demand for automobiles recovered from a seven-month bout of decline, the latest figures from the Ministry of Economy, Trade and Industry showed Wednesday.
Sales fell 0.1 percent year-on-year in April. Economists had forecast a contraction of 0.4 percent following the 0.3 percent drop in March. Despite the improvement, sales have now fallen for four straight months.
Retail trade of motor vehicles grew 1.2 percent annually in April, following a 14.6 percent slump in March. Sales of food and beverages increased 0.9 percent. However, retail trade in machinery and equipment continued its downtrend, falling 4.8 percent last month.
Sales from large retailers declined 2.3 percent annually after adjusting to seasonal variations. Wholesale trade contracted 0.2 percent from a year earlier and commercial sales were also down 0.2 percent. Fuel sales fell 1.7 percent, reflecting lower gasoline costs.
Both the central bank and the government expect private consumption to pick up further in the coming months due to improved consumer sentiment. The Bank of Japan and the Cabinet Office recently upgraded its assessment of the economy as a sliding yen helped lift exports and industrial production.
However, with the country’s bond market crisis looks set to undermine the effects of BoJ’s stimulus program, the bank has pledged to conduct the bond purchases in flexible manner to stem excess volatility in long-term interest rates.
by RTT Staff Writer
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