Japan retail sales disappoint in Oct as inflation, weak yen bite

Japan retail sales disappoint in Oct as inflation, weak yen bite By Investing.com

Breaking News


Economic Indicators 24 minutes ago (Nov 28, 2022 07:10PM ET)

(C) Reuters.

By Ambar Warrick

Investing.com– Japanese retail sales grew less than expected in October, data showed on Tuesday, as rising inflation, slowing economic growth and a severely weakened yen weighed heavily on consumer spending.

Retail sales grew 4.3% from last year in October, data from the Ministry of Economy, Trade and Industry showed. The reading was below expectations for growth of 5%, and also came in below September’s reading of 4.8%.

The data follows a string of weak economic readings for October and November, as the Japanese economy faces increased headwinds from high inflation and a weakening yen.

Inflation in the country’s capital grew more than expected to a 40-year high in November, heralding a similar increase in nationwide inflation. Japanese consumer inflation also surged to a 40-year high in October, severely crimping the spending power of local consumers.

The Japanese economy unexpectedly contracted in the third quarter, recent data showed, while preliminary readings for November showed that this trend is likely to continue in the fourth quarter.

The world’s third-largest economy has been struggling with more expensive fuel and food imports this year, as a growing rift between local and U.S. interest rates saw an increasing amount of traders dump the yen.

The beleaguered currency is trading down nearly 20% for the year, and had earlier hit a 32-year low. The yen rose 0.2% on Tuesday, amid some speculation that worsening economic conditions could push the Bank of Japan into eventually raising interest rates from ultra-low levels.

Tuesday’s reading bodes poorly for the Japanese economy, given that retail spending is a key driver of growth. It also indicates that Japanese businesses may have to contend with slowing sales in the near-term, as local and international demand dries up.

A separate reading showed that Japan’s unemployment rate remained steady at 2.6% in October, disappointing market expectations for a drop to 2.5%.

Japan’s benchmark Nikkei 225 index sank 0.7% after the data.

Japan retail sales disappoint in Oct as inflation, weak yen bite

Egypt’s economic growth at 4.4% in Q1 of FY 2022/23 – cabinetBy Reuters – Nov 28, 2022

CAIRO (Reuters) – Egypt posted economic growth at 4.4% in Q1 of the fiscal year 2022/23, a cabinet statement said on Monday. The employment rate rose slightly to 7.4% in Q1…

Credit default ratio in Brazil hits highest in almost 4 yearsBy Reuters – Nov 28, 2022

BRASILIA (Reuters) – A broad measure of Brazilian consumer and business credit default ratios rose in October to its highest level in almost four years, central bank data showed…

Greek private sector bank deposits drop in OctoberBy Reuters – Nov 28, 2022

ATHENS (Reuters) – Greek private sector bank deposits dropped in October after rising for six months in a row, central bank data showed on Monday. Business and household bank…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.