Japan retail sales up for fifth straight month in July
03:49, 30 August 2021
Japan’s retail sales rose for the fifth consecutive month in July, though August’s outlook seen dimmer with mobility restrictions expanded to other areas in the country.
Retail sales rose 2.4% year-on-year in July, above market expectations for a 2.1% increase and compared with a 0.1% rise in June, Ministry of Economy, Trade and Industry announced on Monday (30 August).
The number of active COVID cases in Japan has swollen from below 17,000 at the start of July to over 63,000 at the of last month, according to coronavirus tracker worldometer. So far this month, the figure ballooned to more than 245,000.
Wider mobility restriction
The rising cases prompted the government last week to expand state of emergency to eight more areas, covering 70% of its populace and spanning a total area which covers 80% of the country’s gross domestic product.
On a monthly basis, retail sales gained 1.1% compared with a 3.1% increase in June, suggesting limited impact from the Olympics - held behind closed doors as Tokyo was under a state of emergency.
“While retail sales recovered further in July, the high frequency data point to a renewed fall in August as the Delta wave intensified and we’ve pencilled in a 0.8% drop in private consumption in Q3 (the third quarter),” Capital Economics senior economist Marcel Thieliant said.