Japan June Retail Sales Up Y/Y on Clothing, Cars; Rebounds M/M

--Japan June Retail Sales +2.1% Y/Y; MNI Median Forecast +2.3%

--Japan June Retail Sales Post 8th Straight Y/Y Rise

--Japan June S/A Retail Sales +0.2% M/M, 1st M/M Rise in 2 Months

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

Economy, Trade and Industry released Friday:

     * Retail sales rose 2.1% on year in June, the eighth straight year-on-year

rise, after +2.1% in May, as demand for summer clothing remained solid and the

lingering effects of the introduction of new models continued to support

automobile sales. The rise in fuel sales continued to slow due to lower gasoline

prices.

     * The increase in retail sales was slightly lower than the MNI median

economist forecast of +2.3%. 

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

saying retail sales showed "signs of a pickup."

     * Compared to the previous month, retail sales edged up 0.2% in June on a

seasonally adjusted basis, the first rise in two months, after falling 1.5% in

May and rising 1.4% in April. The three-month moving average was unchanged after

being flat the previous month. Sales of summer clothing and automobiles remained

solid while those of air conditioners and fans were sluggish amid low

temperatures in June. Fuel prices also slipped on month, reflecting lower crude

oil prices.

     * Industry data released last week showed department store sales rebounded

1.4% on year in June, the first rise in two months, after falling 0.04% in May.

Relatively dry weaker during this year's rainy season and high temperatures

boosted demand for summer clothing while the weak yen and higher stock prices

supported sales of high-end goods. Spending by overseas visitors at department

stores continued to be strong.

     * Automobile retail sales +8.5% on year in June; May +7.0%, the 11th

straight y/y rise.

     * Fuel sales +4.4%; May +8.9%, the seventh straight y/y rise

     * Machinery and equipment (consumer electronics) sales -2.1%; May +0.9%,

the first y/y drop in four months.

     * Food and beverages sales +0.3%; May +0.1%, the fourth consecutive y/y

rise.

     * Apparel sales +5.1%; May +2.2%, the third straight y/y rise.

--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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