Japan retail sales dive in August

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Source: Dukascopy
© Dukascopy
“Consumer spending was recovering after the quake, but that rebound is pretty much over”- Yoshiki Shinke, a senior economist at Dai-Ichi Life Research InstituteImpact: MediumYear on year retail sales in Japan plummeted 2.6% in August, after 0.6% increase in July, said the Ministry of Economy, Trade and Indus-try on Thursday. Economists expected the reading to decline moderate 0.6%.“Consumer spending was recovering after the quake, but that re-bound is pretty much over,” said Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute . “Spending may begin to be a drag on the economy in the long term as households refrain from spending in anticipation of higher taxes."Bank of Japan is to announce it’s Tankan Manufacturing Index on Monday, next week. The index is based on a survey of approximately 1,200 large manufacturers, who are asked to rate the relative level of business conditions.
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