JP: Retail Sales

July 27, 2017 06:50 CDT

Consensus Actual Previous
Year over Year 2.3% 2.1% 2.0%

Retail sales in Japan grew by 2.1 percent in June, up from an increase of 2.0 percent in May and below the consensus forecast for an increase of 2.3 percent.This is the eighth consecutive year-on-year increase in retail sales. Seasonally-adjusted retail sales rose 0.2 percent on the month after a drop of 1.5 percent in May.

Household spending data also released today shows an increase in year-on-year growth from minus 0.1 percent in May to 2.3 percent in June, mainly reflecting stronger spending on housing.

Retail Sales measure the total receipts at stores that sell durable and nondurable goods. The data are part of the Preliminary Report on the Current Survey of Commerce.

Another way to look at consumer spending in addition to the household spending survey is through the retail sales report. This report gives the total value of goods and services sold each month at retail outlets. The preferred number is the change from the previous year. The report serves as a direct gauge of consumption and consumer confidence. Consumer spending is one of the most important leading indicators for the Japanese economy. Increasing sales signal consumer confidence and economic growth, but higher consumption also leads to inflationary pressures.