TOKYO- Japanese retail sales rose at the fastest pace in five months in March as consumer demand recovered from the huge hit it took from the coronavirus pandemic last year.
The world’s third-largest economy has emerged from last year’s slump on an export recovery, though a glacial vaccine rollout and a resurgence in infections are threatening household demand.
Retail sales jumped 5.2 percent in March from a year earlier, government data showed on Wednesday, a larger gain than the median market forecast for a 4.7 percent rise.
That marked the fastest rise since a 6.4 percent advance in October and the first positive growth in four months.
“People felt relaxed as it was becoming spring,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
“They were going out to shopping streets and commercial facilities, leading to more consumption.”
Compared with the previous month, retail sales rose 1.2 percent on a seasonally adjusted basis.
The broader rise in retail sales was driven by higher spending on fashion items such as clothing and accessories as well as general merchandise.
Wednesday’s data also showed department store sales posted a 19.3 percent jump, in contrast to a 2.1 percent drop in supermarket sales, their the second month of declines.
Retail spending returned to pre-pandemic levels in the fourth quarter of 2020 as the economy recovered from the coronavirus induced slump.
However, spending subsequently eased amid COVID restrictions in the first quarter while new state of emergency declarations last week are expected to weigh on consumption in the immediate-term. – Reuters
