Japan July Retail Sales Up on Hot Weather; Pickup Continues

--Japan July Retail Sales +1.9% Y/Y; MNI Median Forecast +0.9% 

--Japan July Retail Sales Post 9th Straight Y/Y Rise

--Japan July S/A Retail Sales +1.1% M/M; 2nd Rise In Row; June +0.2% 

     TOKYO (MNI) - Japan's preliminary retail sales data from the Ministry of

Economy, Trade and Industry released Wednesday:

     * Retail sales rose 1.9% on year in July for the 9th straight year-on-year

rise, backed by strong demand for air conditioners amid high temperatures and

humidity during the month. But the pace of increase slowed from +2.2% in June as

the rise in fuel costs continued to decelerate on lower crude oil prices and

department store sales slumped. The lingering effects of the introduction of new

models supported automobile sales, although at a slower pace.

     * The increase in retail sales was higher than the MNI median economist

forecast of +0.9%.

     * The government left its assessment unchanged from the previous month,

saying retail sales show "signs of a pickup."

     * Compared to the previous month, retail sales rose 1.1% in July on a

seasonally adjusted basis, the second consecutive rise and accelerating from the

gain of 0.2% in June. The three-month moving average of May-July sales fell 0.1%

after being flat in the April-June period. Sales of fuel, clothing and

automobiles fell month-on-month while those of air conditioners rose.

     * Industry data released last week showed department store sales fell 1.4%

on year in July, giving up all of the 1.4% gain in June and posting the first

drop in two months, as early summer sales that had already taken place in late

June at most stores sapped July sales. In July, higher stock prices supported

sales of high-end goods while sales in the southwestern region of Kyushu were

hit by heavy rain and flooding that caused casualties and long-lasting damage.

     * Automobile retail sales +6.6% on year in July, the 12th straight y/y

rise; June +8.7%.

     * Fuel sales +3.8%, the eighth straight y/y rise; June +4.6%. 

     * Machinery and equipment (consumer electronics) sales +4.3%, the first y/y

rise in two months; June -2.4%.

     * Food and beverages sales +0.2%, the fifth consecutive y/y rise; June

+0.2%.

     * Apparel sales +3.5%, the fourth straight y/y rise; June +5.3%. 

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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