Japan retail sales slide
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Japan retail sales slid two per cent in January according to government data.
Japan’s Ministry of Economy, Trade and Industry surveys department stores, chain stores, supermarkets and other large-scale stores and convenience stores to compile a monthly trend index.
Last month’s year-on-year decline was the first in seven months, with commentators citing bad weather and continuing decline in take-home incomes for the downturn.
However the trend may have been exaggerated due to consumers spending more than usual in the first three months of 2014 to beat an increase in sales tax which took effect in April
December’s retail sales were up 0.2 per cent year-on-year.
Charts with full data are available at the Ministry’s website.
Questions & Answers
Q.What was the year-on-year change in Japan's retail sales for January?
What was the year-on-year change in Japan's retail sales for January?
Japan's retail sales declined by two per cent year-on-year in January. This marked the first such decrease in seven months, following a slight rise in December's figures.
Q.Which types of stores are included in the Ministry of Economy, Trade and Industry's retail sales survey?
Which types of stores are included in the Ministry of Economy, Trade and Industry's retail sales survey?
The Ministry's monthly trend index compiles data from a range of large-scale retail outlets. These include department stores, chain stores, supermarkets, and also convenience stores across Japan.
Q.What reasons have commentators suggested for the downturn in retail sales?
What reasons have commentators suggested for the downturn in retail sales?
Commentators have pointed to several factors contributing to the decline. These include adverse weather conditions during the month and a continuing reduction in the take-home incomes of consumers.
Q.Could the previous year's spending patterns have influenced the January sales figures?
Could the previous year's spending patterns have influenced the January sales figures?
Yes, it is suggested that consumers spent more than usual in the first three months of 2014. This was to pre-empt a sales tax increase that became effective in April of that year, potentially exaggerating the current trend.
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