— Japan Retail Sales Post 3rd Straight Y/Y Rise; Feb +4.2%
— Japan Mar Retail Auto Sales +19.6% Y/Y Vs Feb Revised +14.8%
— Japan Mar Retail Sales Also Pushed Up By Higher Fuel Prices

TOKYO (MNI) – Japanese retail sales surged 4.7% in March from a
year earlier, posting the largest year-on-year gain in 13 years, data
from the Ministry of Economy, Trade and Industry released on Wednesday
showed.

It was the third straight year-on-year increase after an unrevised
rise of 4.2% in February.

Higher costs of fuel prices as well as continued solid sales of
motor vehicles boosted overall retail sales. Fuels sales rose for the
fourth consecutive month from year-earlier levels while auto sales
posted the 10th straight y/y gain.

Retail sales have recovered from -5.7% in February 2009, which was
the largest y/y drop in seven years. In January this year, retail sales
rose 2.3%, posting the first y/y gain in 17 months.

The 4.7% rise in March 2010 was the largest gain since +12.4% in
March 1997, which was boosted by rush purchases before the sales tax
hike to 5% from 3% the following month.

Excluding this special factor, the March rise was the sharpest rise
since +4.7% in February 1992, when sales were pushed up by leap-year
effects.

For the whole of fiscal 2009 that ended March 31, retail sales fell
0.4% from a year earlier, down for the second straight year, but the
pace of decline slowed from a 1.1% fall in fiscal 2008.

The growth in March retail sales was led by increases in five out
of seven major categories: motor vehicles (+19.6%), fuel (+19.5%),
machinery (+12.9%), clothing (+8.0%) and food and beverages (+0.6%)

Meanwhile, year-on-year declines were seen in sales at department
stores and supermarkets (-4.6%) as well as other retail sales (-4.5%).

The 19.5% rise in fuel sales in March was the fourth consecutive
month of y/y gains following +20.5% in February and +11.2% in January.
The 9.0% rise in December 2009 was first year-on-year gain in 15 months.

Fuel sales have recovered from the record y/y drop of -23.3% marked
in February 2009.

Retail gasoline prices in Japan have been on a general uptrend
since mid-January 2009. In the week to April 19, the average price of
regular gasoline rose to Y135.2 ($1.45) per liter from Y133.2 a week
earlier, posting the seventh weekly rise in a row. It was much higher
than the Y115.1 price of a year earlier.

Motor vehicle sales posted the 10th straight month of y/y gains as
demand for passenger cars continued to be supported by tax breaks and
subsidies for buying low-emission vehicles.

The 19.6% rise in auto sales in March accelerated from a revised
+14.8% in February, +13.1% in January and +14.5% in December 2009, but
was slower than +21.0% in November 2009, which was the largest y/y gain
since March 1997, when vehicle sales were up 21.1%.

Sales of machinery and equipment also gained 12.9% in March,
marking the seventh consecutive y/y gain after +8.7% in February and
+3.6% in January, thanks to the government’s reward program for
purchases of greener consumer electronics including flat-screen TVs and
refrigerators.

Other details from the latest data:

Commercial sales, or combined sales at the wholesale and retail
levels (y/y): Mar +2.0%, the first year-on-year rise in 18 months, vs.
Feb -0.9% and the record -24.3% marked in May 2009.

Sales at the wholesale level (y/y): Mar +1.1%, also the first
year-on-year gain in 18 months, vs. Feb revised -2.7% and the record
-30.3% hit in May 2009.

Large retail store sales on a same-store adjusted basis (y/y): Mar
-5.0%, the 24th straight y/y drop, vs. Feb -4.0%.

Large retail store sales, unadjusted (y/y): Mar -4.2%, the 20th
consecutive y/y drop, vs. Feb. -3.4%.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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