Despite high inflation, Japan’s retail sales grew at a faster pace in May suggesting strong contribution by private consumption to economic growth, official data revealed Thursday. <\/p>\n
Elsewhere, a monthly survey published by the Cabinet Office showed that consumer confidence improved to an 18-month high in June as households were more positive about income growth and employment.<\/p>\n
Retail sales registered an annual growth of 5.7 percent in May after rising 5.1 percent in April, the Ministry of Economy, Trade and Industry reported. <\/p>\n
The pace was also faster than economists’ forecast of 5.4 percent. <\/p>\n
Sales increased for the 15th straight month in May. The latest growth was driven by higher demand for automobiles, medical and cosmetic products. <\/p>\n
On a monthly basis, retail sales grew unexpectedly by 1.3 percent, in contrast to the 1.1 percent decrease in April. Economists had forecast sales to fall 0.2 percent in May. <\/p>\n
The revival in the tourism sector helped by the weakening yen also boosted consumer spending in June. <\/p>\n
The consumer sentiment index rose to 36.2 in June, as expected, from 36.0 in the previous month, survey data showed. <\/p>\n
Among four sub-indices, the overall livelihood index held steady at 32.9 in June. The income growth index rose 1.0 point to 38.9 and the employment index advanced to 43.1. <\/p>\n
Meanwhile, the indicator for willingness to buy durable goods dropped 0.4 points to 29.9. The survey was conducted among 8,400 households on June 15. <\/p>\n