TOKYO (Reuters) – Japan's retail sales have risen more than 10 months in October as consumers shelled out more on fuel, cars, medicines and cosmetics,
FILE PHOTO – A store staff member at a clothing store in Tokyo, Japan May 17, 2017. REUTERS / Toru Hanai / File Photo
The 3.5 percent annual increase in retail sales in October from a year ago led to a median estimate of a 2.6 percent increase and follows a revised 2.2 percent rise in September.
It was the fastest annual gain since last December.
Retail sales are a key barometer for the private consumption, which accounts for approximately 60 percent of the Japanese economy. The data confirmed they have risen for a full straight year, reflecting a tight labor market and gradual wage growth.
Policymakers are counting on a rise in private consumption to the central bank's 2 percent target, as core consumer prices have risen just at half the target target over five years of its massive monetary stimulus.
On a seasonally-adjusted basis, retail sales grew 1.2 per cent in October and revised 0.1 per cent in the previous month, data from the Ministry of Economy, Trade and Industry showed.
It marked a fifth monthly monthly gains, and was the biggest increase since June.
Japan's economy, the world's third largest, expected more than third quarter, hit by natural disasters and sluggish exports.
But a flurry of data due this week, including factory output and jobless figures, is expected to reinforce consensus views that the contraction was temporary.
The economy is widely expected to return to growth in the current quarter, though the strength of that rebound is still up for debate. Slowing global demand and the intensifying U.S.-China trade war are clouding the outlook for export-reliant Japan.
Japanese manufacturing activity expanded at the slowest pace in two years in November and new orders contracted for the first time since September 2016, a preliminary survey showed.
Reporting by Tetsushi Kajimoto; Editing by Kim Coghill