Japan’s retail sales rose for a third straight month in May, bolstering speculation that strong consumption will lead to economic recovery this quarter, although rising inflation threatens household spending for the rest of 2022.
Retail sales rose 3.6% in May from a year earlier, according to government data, slightly higher than the average forecast of 3.3% growth.
This is the third month since March, when the government lifted all restrictions on the coronavirus.
On a seasonally adjusted monthly basis, retail sales increased 0.6% in May, following an increase of 1% in April.
The recovery in service consumption and wider household spending is likely to boost the world’s third-largest economy, with analysts expecting annual growth of 4.1% of GDP this quarter, following a 0.5% recession in January-March.
Japan’s consumer confidence index fell in June for the first time in the quarter, to 32.1 points from 34.1 points in May, according to separate data.
It reached its lowest level since January 2021, when an increase in coronavirus cases reduced consumers’ willingness to spend.
“The continuing rise in the cost of electricity, food and other everyday goods has likely reduced the consumer climate,” a cabinet official told the media.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
