The FINANCIAL — Japanese retail sales fell unexpectedly in September on the back of lower fuel prices, underscoring some weakness in consumer spending, according to Nasdaq.
Retail sales fell 0.2% from a year earlier in September, the Ministry of Economy, Trade and Industry said on October 28, compared with a 0.8% increase in August. That marked the first fall in six months.
Compared with a month earlier, retail sales rose 0.7% after seasonal adjustment, and on-quarter they rose 1.8%, indicating more resilience than suggested by the fall compared with a year earlier.
The year-over-year decrease was due in large part to a 15.4% fall in fuel sales, reflecting cheaper fuel prices, and in sales of home electronics and cars.
The government said retail sales were flat despite weakness in some areas.
Economists are looking closely for a rebound in consumer spending for clues as to how Japan’s economy fared in the third quarter. Japan’s economy contracted in the second quarter, in part due to a fall in household spending.
There has been some positive data in the third quarter. Household spending jumped an unexpected 2.9% on year in August, the first rise in three months. September household spending data is due Friday.
Sales at large-scale retailers such as department stores increased 1.7% on year in September.
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