Japan’s Retail Sales Pick Up in November as COVID-19 Cases Drop

Japan’s Retail Sales, Retail sales across Japan registered a better than expected growth through the month of November; offering some relief to the world’s third largest economy. According to data released by the government, Japan’s retail sales rose by 1.9% YoY during November; better than the 0.9% rise seen in October; and the 1.7% increase forecast by economists.

The surge in commodity prices helped fuel sales rise by 29.2% YoY in November; supporting the strong increase in overall retail sales. However; the increase in fuel sales was offset by a decline in car sales by 14.1% YoY and in electronic appliances by 10.6%.

One of the biggest factors supporting the uptick in retail sales across the country was a decline; in the number of COVID-19 cases. However; the optimism; could be short-lived over concerns; of the recently discovered and more contagious Omicron; variant making its way into Japan’s largest cities.

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The Japanese government has not yet imposed any fresh ;restrictions or curbs due to Omicron but analysts worry that this could change if infections see a sharp spike in the coming days and weeks. With the holiday season winding down and travel on the rise; any increase in COVID-19 infections could once again see Japan coming under curbs which could weaken consumer activity all over again.

According to the most recent poll by Reuters; Japan’s economy is expected to post a growth of 6.1% between October and December after contracting by 3.6% in the previous quarter. The forecast has been revised higher since the previous edition of the poll in which economists anticipated a growth of 5.1% for the current quarter instead.