"We would need to see an increase in salaries for consumption to improve further, but the latest jobless data suggest there is some cause for concern"
- Shuji Tonouchi of Mitsubishi UFJ Morgan Stanley Securities
Japan's retail sales rose by less than economists forecast in April. Retail sales gained 5.8 per cent, compared to the same period last year, said the Ministry of Economy, Trade and Industry. Moreover, the Statistics Bureau said household spending increased 2.6 per cent.
"The government's subsides are pushing up sales of cars," said Tokyo-based economist Haruka Kazama from Mizuho Research Institute.
"Last year people didn't travel much after the earthquake, but this year we see people willing to spend more money on vacations," he said.
"We would need to see an increase in salaries for consumption to improve further, but the latest jobless data suggest there is some cause for concern," said Shuji Tonouchi of Mitsubishi UFJ Morgan Stanley Securities.
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