MNI DATA IMPACT: Japan Oct Retail Sales Tumble, METI Cuts View

     TOKYO (MNI) - Japan's retail sales fell sharply in October, dragged lower

by falling sales of general merchandise, machinery/equipment and motor vehicles,

data from the Ministry of Economy, Trade and Industry (METI) showed Thursday.

     Here are the key points from the latest retail sales data:

     --Retail sales fell 7.1% year-on-year in October, the deepest seen this

year, offseting some of last month's 9.2% gain and outpacing the 4.1% y/y drop

projected by MNI's median survey. 

     --General merchandise sales dropped 13.2% y/y from the previous month's

14.0% y/y growth. Sales for machinery and equipment also fell dramatically 15.0%

y/y from September's 37.8% y/y increase.

     --Fuel sales decrease expanded to 13.0% y/y from last month's 0.1% y/y

drop. Sales of food and beverages edged down 2.2% y/y, compared with a 1.2% y/y

increase. Sales for fabric apparels and accessories decreased 5.7% y/y, down

from the previous 2.0% y/y gain.

     --On a monthly basis, retail sales were down 14.4% in October, much slower

than last month's pre-tax hike 7.1% increase.

     --METI cut its view on retail sales, which says retail sales will "mark

time".

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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