By
Reuters
Reuters
Published
Jun 28, 2011
Jun 28, 2011
Japan retail sales continue recovery from quake damage
By
Reuters
Reuters
Published
Jun 28, 2011
Jun 28, 2011
June 28 - Japanese retail sales rose for a second straight month in May compared with the previous month, signalling that consumers are more willing to spend as sentiment
gradually recovers from the devastating earthquake in March.
A market in Asakusa, Tokyo - photo: corbis |
Sales fell compared with the year-ago level, but at a slower pace than expected, underscoring the view among many analysts that the economy will recover moderately by the end of this year as supply constraints ease in the third quarter.
But any recovery in consumption will likely be slow as companies are in no mood to boost jobs and wages given the murky economic outlook.
"Summer clothing seemed to have sold well due to the hot weather in May, and this trend may continue in June and beyond," said Junko Nishioka, chief economist at RBS Securities Japan.
"But whether this momentum will continue in the latter half of this year is uncertain, especially if winter bonus payments slump."
Retail sales rose 2.4 percent in May from the previous month on a seasonally adjusted basis after a 4.1 percent increase in April, data from the Ministry of Economy, Trade and Industry showed on Tuesday.
Retail sales fell 1.3 percent in May from the previous year, smaller than both a median market forecast for a 2.6 percent drop and the 4.8 percent decline marked in April.
The Bank of Japan is expected to hold off on easing monetary policy at its rate review this month unless a sudden spike in the yen threatens Japan's economic recovery.
(Writing by Leika Kihara; Editing by Edmund Klamann)
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