— Japan July Retail Sales -0.8% Y/Y; MNI Median Fcast -0.3%
— Japan July Retail Sales Post 1st Y/Y Drop in 8 Months
— Japan July Retail Car Sales +32.5% Y/Y; June +37.2%
— Japan July Retail Fuel Sales -7.0% Y/Y; June -6.1%
— Japan July Retail Machinery Sales -26.6% Y/Y; June -32.4%
TOKYO (MNI) – Japan’s retail sales posted the first year-on-year
drop in eight months in July as subsidy-backed car purchases continued
to slow and TV sales remained depressed after buoyant demand seen a year
earlier, data from the Ministry of Economy, Trade and Industry released
Thursday showed.
July retail sales fell 0.8% on year, below the MNI survey median
forecast for a 0.3% fall. It followed rises of 0.2% in June 3.6% in May,
5.7% in April and 10.3% in March.
Retail sales of automobiles rose 32.5% from a year earlier in July,
posting the10th consecutive y/y gain, but the rate of growth decelerated
from a 37.2% rise in June.
Automobile sales sagged during most of 2011 after the government
ended subsidies for buying low-emission vehicles in September 2010 but
they have been supported until recently by the resumption of the program
last December.
Economists have warned of a slowdown in retail sales as the effects
of the subsidies on auto sales, which account for about 10% of overall
retail sales, wane.
The government program is expected to be terminated this month, one
month earlier than expected, as it is running out of money due to high
demand.
Recent industry data showed that new car sales rose just 36.1% on
year to 328,543 units in July. The pace of increase decelerated from
rises of 40.9% in June, 66.3% in May, 92.0% in April and 78.2% in March.
Reflecting lower gasoline and heating oil prices, retail sales of
fuel posted the second straight year-on-year fall, down 7.0% in July
after a 6.1% decline in June.
Retail sales of machinery and equipment including consumer
electronics posted a 12th straight on-year drop, down 26.6% in July,
following a 32.4% fall in June.
Demand for digital broadcasting-compatible TVs was buoyant until
July 2011, when analog broadcasting service ended.
Other details from the latest data:
Commercial sales, or combined sales at the wholesale and retail
levels (y/y): July -3.1%, a second straight fall.
Sales at the wholesale level (y/y): July -3.9%, also a second
straight fall.
Large retail store sales on a same-store adjusted basis (y/y): July
-4.4%, a fourth straight drop.
Large retail store sales, unadjusted (y/y): July -4.0%, a third
straight fall.
tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-6860-4821 **
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