Magazines Archives - 2007 July

Sign of pick-up in Japan’s retail
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FOLLOWING an eight-month decline, Japan’s retail sales saw its first rise this year in May, albeit just 0.1% over last year, reported the country’s Ministry of Economy, Trade and Industry last month.

Year-on-year F&B sales, which rose by 1.7%, were mostly responsible for the growth. According to the government, consumers “spent more on beverages to cool themselves [in] warmer-than-usual temperatures across the nation”.

However, economists remain unconvinced that the market is recovering. As consumer spending makes up the majority of the nation’s GDP, economists argue that income levels would be a clearer indicator of consumption. They even predicted a 0.4% drop in sales for the quarter.

Still, the government remains hopeful, with Economic Minister Hiroko Ota maintaining that Japan’s recovery is firm despite some weakness in output.