Retail sales in Japan unexpectedly fell in September on an annual basis but rebounded for the quarter, putting the BOJ between a rock and a hard place before they meet this week. Meg Teckman reports.
Mixed bag for Japanese retail sales in September
Japanese consumption proves a mixed bag in September.
After flat monthly growth in August, sales rose a modest 0.7 percent in September on a seasonally-adjusted basis.
However compared to September last year, sales unexpected fell 0.2 percent after five straight months of gains.
Leaving a nearly two percent quarterly increase for July to September.
Falling prices and increased wages have helped get some consumers to open their wallets for items like food and clothing.
But sales of big ticket items like cars remain weak.
This wobbly data comes before the Bank of Japan meets this week to review fiscal year forecasts.
Where policymakers are expected to lower projections to keep calls for more easing at bay.
Both the BOJ and the government are also hoping for a recovery in Q3 GDP growth when the data is released mid-November, to keep the economy out of recession after last quarter’s contraction.