Global| Apr 28 2010Japan’s Retail Sales Are On The Road To Recovery
Summary
Japan’s retail sales have made another strong monthly gain. In the just-completed quarter, nominal retail sales are rising at an 11.3% annual rate over the previous quarter’s level. Gains are strong across the major retail categories [...]
Japan’s retail sales have made another strong monthly gain. In the just-completed quarter, nominal retail sales are rising at an 11.3% annual rate over the previous quarter’s level. Gains are strong across the major retail categories we follow in the table above.
We are looking at the strongest Yr/Yr gains in Japan’s retail sales in well over a decade. The results are a breath of fresh air amid the sorts of news we are dealing with in markets today. News of Japan’s strengthening economy is being submerged by the Goldman Sachs inquiry and testimonies, the Greek relapse, the downgrading of Portugal and by Germany’s reluctance to approve the disbursement of funds for Greece.
As the European circus goes on, few eyes are cast to Asia. Japan’s improvement is a welcome sign, however. This not just a better economic report from Japan, but it is also evidence that the Japanese consumer has finally emerged to spend. We are still waiting for the same sort of thing to happen in Europe where the recovery remains largely an industrial and export-led recovery without much consumer participation.
| Japan Retail Sales Trends | ||||||||
|---|---|---|---|---|---|---|---|---|
| Mar-10 | Feb-10 | Jan-10 | 3-mo | 6-mo | 12-mo | Yr-Ago | Q-to-Date | |
| Total SA | 0.8% | 0.9% | 2.0% | 15.9% | 5.7% | 4.9% | -12.5% | 11.3% |
| Not seasonally adjusted | ||||||||
| Total: Nominal | -0.1% | 1.8% | 2.4% | 17.4% | 7.9% | 4.6% | -13.0% | 14.3% |
| Motor Vehicles | 2.0% | -1.2% | 2.5% | 14.0% | 22.0% | 18.2% | -16.3% | 9.2% |
| Food& Beverage | 0.5% | -2.0% | 5.1% | 15.1% | 2.6% | 0.6% | 2.2% | 12.1% |
| Fabric apparel& access | -0.7% | 2.3% | 3.1% | 20.7% | 10.3% | 8.0% | -15.3% | 24.3% |
| Rest of Retail | -0.9% | 5.0% | 0.5% | 19.2% | 7.6% | 3.5% | -20.2% | 15.5% |
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
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