Japanese retail sales marked an eighth successive month of annual growth in October 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 per cent higher than a year earlier, government data showed today. The rise was lower than economists’ median forecast of 5.0 per cent.
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 per cent in October from a month earlier. It marked the fourth month of increase but was much smaller than a 1.5 per cent 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 Nov 29 showed Japan’s jobless rate had been unchanged at 2.6 per cent in October, despite economists polled by Reuters expectation of an improvement to 2.5 per cent.
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.
