Japan retail sales up for 8th month on tourism reopening



*

Oct retail sales +4.3% y/y vs f'cast +5.0%

*

Retail sales +0.2% m/m seasonally adjusted

*

Oct jobless rate unchanged at 2.6%

(Recasts with background, details, jobs data)

By Kantaro Komiya

TOKYO, Nov 29 (Reuters) - Japanese retail sales marked an eighth successive month of annual growth in October, data showed on Tuesday, after full reopening of borders added to the boost from this year's dismantling of internal pandemic control measures.

There was little growth from September, however, as Japanese households were squeezed by inflation running at its fastest pace in 40 years.

Retail sales in October were 4.3% higher than a year earlier, government data showed on Tuesday. The rise was lower than economists' median forecast of 5.0%.

The indicator, a barometer of private consumption, has been growing since March, when the Japanese government lifted remaining curbs on face-to-face services.

On a seasonally adjusted basis, retail sales gained 0.2% in October from a month earlier. It marked the fourth month of increase but was much smaller than a 1.5% rise in September.

The number of foreign visitors to Japan in October was almost 500,000, more than twice as many as in September. October was the first month in which the country was fully reopened to overseas travellers.

The inflow of inbound visitors has reinforced a hope for Japan's consumption-led recovery after the economy posted a surprise contraction for July-September. The biggest gains in tourist spending may come later, however, since Japan is still getting few visitors from China, where strict border controls remain in place.

Separate data released on Tuesday showed Japan's jobless rate had been unchanged at 2.6% in October, despite economists polled by Reuters expectation of an improvement to 2.5%.

The ratio of advertised jobs to applicants, a key gauge of job availability, grew for a tenth successive month, to 1.35, the highest level since March 2020.
Reporting by Kantaro Komiya; Additional reporting by Yoshifumi Takemoto and Kentaro Sugiyama; Editing by Mark Porter and Bradley Perrett

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.