REPEAT: MNI 5 THINGS: Japan Apr Retail Sales Up; Trend Flat

Repeats Story Initially Transmitted at 05:34 GMT May 30/01:34 EST May 30

     TOKYO (MNI) - Japan's retail sales posted solid gains both on year and

month in April, indicating consumption may rebound in the second quarter after

the severe winter weather caused a slump in the first three months of the year,

preliminary retail sales released Wednesday by the Ministry of Economy, Trade

and Industry (METI) showed.

     For clearer indications of consumption including spending on services, the

Ministry of Internal Affairs and Communications releases household spending on

Tuesday, June 5, and the Bank of Japan releases its supply-side Consumption

Activity Index on Thursday, June 7, both for April.

     The key points from April retail sales data:

     * Retail sales rose 1.6% on year in April for the sixth straight

year-on-year rise, coming in firmer than the MNI median economist forecast for

+1.1%. The pace of growth accelerated from +1.0% in March but was slower than

the recent peak of +3.6% in December 2017.

     * The increase was partly supported by recent gains in the prices for food

and beverages as well as fuels, compared to year-earlier levels. Excluding the

sales of those two categories, retail sales rose only 0.8% on year. Sales of

fuels accelerated to 11.2% y/y in April from +7.1% in March while those of food

and beverages slowed to +0.5 y/y in April from +1.8% in March and +2.5% in

February as fresh food costs have eased after a surge late last year.

     * On the month, retail sales rose 1.4% on a seasonally adjusted basis in

April, the first rise in two months after -0.6% in March. In Q1, retails sales

fell a seasonally adjusted 0.6% on quarter. The three-month moving average

rebounded 0.4% from the previous three-month period in April, marking the first

rise in three months.

     * METI maintained its view that retail sales are flat. Last month it

downgraded its view for the first time since January 2016. Previously, it said

retail sales had been picking up moderately.

     * Earlier this month, industry data showed department store sales rose 0.7%

in April for the second straight year-on-year rise as higher temperatures

boosted demand for spring and summer clothing. The Japan Department Stores

Association also noted that amid stable foreign exchange and stock markets,

spending by tourists from overseas continued to post double-digit percentage

gains on year to another record high in April, and that sales to wealthy

consumers remained solid.

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