Business

Japan Retail Sales Show Improvement In July

Japanese retail sales fell by the smallest margin in five months in July, a possible indication that consumers may becoming less cautious about spending despite slow wage growth and uncertainty over the global economy. Retail sales edged down 0.2% from a year before, according to data released by the economy ministry. On month, however, retail sales increased 1.4% after seasonal adjustment. Sales at large-scale retailers rose 0.6% on year, after adjustment for the change in the number of stores, the first increase in five months. Japan's private consumption has lacked strength in recent months amid slow wage growth. The situation has been exacerbated by a stronger yen, which has weakened corporate profits and made firms cautious of giving workers pay raises.

To shore up the economy, the Japanese government has unveiled a series of pump-priming measures, including an economic stimulus package worth US$ 280 billion and the postponement of a planned sales tax increase.