JP: Retail Sales

Tue Aug 29 18:50:00 CDT 2017

Consensus Actual Previous Revised
Year over Year 0.9% 1.9% 2.1% 2.2%

Retail sales in Japan grew by 1.9 percent in July, down from an increase of 2.2 percent in June but well above the consensus forecast for an increase of 0.9 percent. This is the ninth consecutive year-on-year increase in retail sales. Seasonally-adjusted retail sales rose 1.1 percent on the month after advancing 0.2 percent in June.

Household spending data released earlier this week showed a small year-on-year decline of 0.2 percent in July after a 2.3 percent increase in June. This drop in growth mainly reflects the impact of spending on housing. A measure of core household spending rose 0.5 percent on the year in July, up from 0.1 percent in June.

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.