REPEAT: MNI 5 THINGS: Japan July Retail Sales Up on Fuels

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

--Rain Storms, Heat Waves Hit Clothing, Department Store Sales 

     TOKYO (MNI) - Japan's retail sales posted the ninth straight year-on-year

rise in July as higher energy costs and strong demand for food and beverages

offset the dampening effects of heavy rains and severe heat waves on department

store sales, preliminary data released Thursday by the Ministry of Economy,

Trade and Industry (METI) showed.

     The key points from the latest retail sales data:

     * Retail sales rose 1.5% on year in July for the ninth straight

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

forecast for +1.2%. The pace of growth was slightly below the 1.7% rise in June

and was lower than the recent peak of +3.6% in December 2017.

     * Fuel sales continued to grow at a high pace of +17.5% y/y in July after

+17.0% in June on year-on-year gains in energy prices. Sales of medicine and

cosmetics also remained solid, up 4.8% y/y in July after +3.7% in June.

     * On the other hand, bad weather pushed down apparel sales by 3.8% in July,

the fourth straight year-on-year drop after -2.3% in June.

     * On the month, retail sales rose 0.1% on a seasonally adjusted basis in

July for the second straight m/m rise after +1.4% in June. The three-month

moving average fell 0.1% from the previous three-month period in July, the first

drop in two months after rising 0.4% in June.

     * METI maintained its view that retail sales are "flat." In February, it

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

retail sales had been picking up moderately.

     * Industry data released last week showed department store sales slumped

6.1% on year in July for the first y/y drop in two months after rising 3.1% in

May, hit by killer rain storms and heat waves. There was also one less Saturday

in the month compared to last year. The Japan Department Stores Association

noted that spending by tourists from overseas continued to post double-digit

percentage gains on year.

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