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by Yoshifumi Takemoto and Kentaro Sugiyama
TOKYO (Reuters) – Japan’s retail sales rose for a ninth straight month in November, data on Tuesday showed, as the COVID-19 Frontier Regulation and government subsidies for domestic travel help consumer demand.
But compared with the previous month, sales were down from October, with daily necessities rising as core consumer inflation hit a new high. Japanese family brings pressure 11 – year high, indicating that price increases are expanding.
A recovery in private consumption, which accounts for more than half of Japan’s economy, is key to driving growth, which unexpectedly shrank in the third quarter.
Retail sales rose 2.6% from a year earlier, but below the median estimate of 3.7%. Annual growth in sales, a barometer of private consumption, slowed from 4.4 percent in October and 4.8 percent in September.
On a seasonally adjusted basis, retail sales fell 1.1% month-on-month in November, the first decline in five months.
Data last week showed that tourist arrivals to Japan surged to nearly 1 million in November, the country’s first full month since the COVID- Containment effectively stopped tourism for over two years.
The government’s domestic travel subsidy campaign launched in mid-October to help the pandemic-hit tourism industry also encourages people to spend more time on travel and tourism consumption of goods.
Japan’s unemployment rate fell to 2.5% in November from 2.6% in October, in line with forecasts in a Reuters poll, separate data showed .
The ratio of jobs to applicants, a key measure of job availability, is 1. , unchanged from October, and remained at the highest level since March 52.
Bank of Japan Governor Haruhiko Kuroda said on Monday that he hoped the deepening labor shortage would prompt firms to Raising wages, while he ruled out any near-term exit from ultra-loose monetary policy.
Higher inflation may also prompt companies to shift to higher wages. Canon Corporation plans to increase base salary for the first time in year,178 Nikkei
Business Daily on Monday in its reported on the website.
Japan’s economy unexpectedly shrank in the third quarter, and the global recession Risks mount, with China’s faltering economy, a weak yen and rising import costs hurting consumption and businesses.
The government last week raised its growth forecast for the next fiscal year to 1.5% from 1.1% in July. 200