Japan’s Retail Sales Decline For Third Consecutive Month in February

Retail sales across Japan posted a decline for the third consecutive month during February amid cautious spending among consumers due to the ongoing coronavirus pandemic. Data released by the government reveals that retail sales were down by 1.5% YoY in February, slightly better than the 2.4% decline seen in the previous month.

On a monthly basis, retail sales were up by 3.1% seasonally adjusted. Meanwhile, sales were down across clothing, toiletries and general merch, pulling down the overall figure as consumers remained hesitant about spending their money due to the reigning uncertainty.

Japan’s unemployment rate remained unchanged at 2.9% on a seasonally adjusted basis during February, slightly lower than economists’ forecast which was for a reading of 3% instead. Data released by the Japan’s labor ministry also indicates that the number of applicants per job also posted a slight decline – from 1.10 in January to 1.09 during February.

According to a recent Reuters poll, the Japanese economy is expected to contract by 6% between January and March 2021 – the first contraction in a year. Even as the global economic conditions start recovering helping spur Japan’s exports, household spending continues to remain weak, driving down the GDP.