| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.7% | -0.4% to 2.1% | 0.8% | 0.2% | |
| Year over Year | 1.9% | 0.2% to 2.6% | 2.8% | 2.6% | 2.7% |
Highlights
Japanese retail sales rose 2.8 percent on year in August, coming in firmer than the consensus call of a 1.9 percent gain. It was the 30th straight increase following a revised 2.7 percent gain in July. On the month, retail sales rose 0.8 percent for a fifth straight increase, as largely expected, after edging up 0.2 percent.
METI maintained its assessment after upgrading it for the second straight month for the June data, saying retail sales are"on an uptrend."
Industry data released last week showed department store sales marked the 30th straight year-over-year rise in August, up 3.9%, with the pace of increase decelerating further from 5.5 percent in July and 14.0 percent in June. Sales last month slipped 0.3 percent from the pre-pandemic August 2019, a rare drop after months of gains that confirmed that the economy has recovered from the Covid slump. The Japan Department Stores Association said a powerful typhoon and rain storms forced some stores to close but inbound spending as well as demand for luxury brands remained strong.
METI maintained its assessment after upgrading it for the second straight month for the June data, saying retail sales are"on an uptrend."
Industry data released last week showed department store sales marked the 30th straight year-over-year rise in August, up 3.9%, with the pace of increase decelerating further from 5.5 percent in July and 14.0 percent in June. Sales last month slipped 0.3 percent from the pre-pandemic August 2019, a rare drop after months of gains that confirmed that the economy has recovered from the Covid slump. The Japan Department Stores Association said a powerful typhoon and rain storms forced some stores to close but inbound spending as well as demand for luxury brands remained strong.
Market Consensus Before Announcement
Japanese retail sales are forecast to have lost further steam, slowing to a 1.9 percent rise on year in August from a 2.6 percent gain in July in light of a dip in new vehicle sales, solid but slower department store sales and lower gasoline prices. On the month, retail sales are expected to rise 0.7 percent for a fifth straight increase after edging up 0.2 percent.
Last month, the METI maintained its assessment after upgrading it for the second straight month for the June data, saying retail sales are"on an uptrend."
Last month, the METI maintained its assessment after upgrading it for the second straight month for the June data, saying retail sales are"on an uptrend."
Definition
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.
Description
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.
