— Japan Aug Retail Sales +1.8% Y/Y; MNI Median Fcast Unchanged
— Japan Retail Sales Post 1st Y/Y Rise in 2 Months; July -0.7%
— Japan Aug Retail Car Sales +19.6% Y/Y; July +32.5%
— Japan Aug Retail Fuel Sales -4.8% Y/Y; July -6.9%
— Japan Aug Retail Machinery Sales -10.1% Y/Y; July -26.7%

TOKYO (MNI) – Japan’s retail sales posted the first year-on-year
rise in two months in August, buoyed by subsidy-backed car purchases
although their pace is decelerating, data from the Ministry of Economy,
Trade and Industry released Friday showed.

In August, retail sales increased 1.8% on year, above the MNI
survey median forecast for being flat. It followed a decline of 0.7% in
July and rises of 0.2% in June 3.6% in May.

Retail sales of automobiles rose 19.6% from a year earlier in
August, posting the 11th consecutive y/y gain, but the rate of growth
decelerated from a 32.5% increase in July and a 37.2% rise in June.

Automobile sales sagged during most of 2011 after the government
ended subsidies for buying low-emission vehicles in September 2010 but
they have been supported until recently by the resumption of the program
last December.

Economists have warned of a slowdown in retail sales as the effects
of the subsidies on auto sales, which account for about 10% of overall
retail sales, wane.

The government has announced that it is winding up the program in
September as planned.

Recent industry data showed that new car sales rose just 7.3% in
August, as the growth pace slowed down from rises of 36.1% in July,
40.9% in June, 66.3% in May and 92.0% in April.

Despite the recent upturn in gasoline prices, retail sales of fuels
posted the third straight year-on-year fall, down 4.8% in August after
-6.9% in July.

Retail sales of machinery and equipment including consumer
electronics posted a 13th straight on-year drop, down 10.1% in August
following a 26.7% drop in July.

Demand for digital broadcasting-compatible TVs was buoyant until
July 2011, when analog broadcasting service ended.

Other details from the latest data:

Commercial sales, or combined sales at the wholesale and retail
levels (y/y): Aug -2.7%, a third straight fall.

Sales at the wholesale level (y/y): Aug -4.3%, also a third
straight fall.

Large retail store sales on a same-store adjusted basis (y/y): Aug
-0.9%, a fifth straight drop.

Large retail store sales, unadjusted (y/y): Aug -0.1%, a fourth
straight fall.

tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-6860-4821 **

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