An indicator to consumption spending
1.1% m/m ... big beat
- expected 0.3% m/m, prior 0.2%
1.9% y/y ... ditto
- expected 1.0% y/y, prior 2.2%
Retail sales grow for a ninth consecutive month in July
- Hotter-than-average summer weather spurred sales of air conditioners & beverages
- Car sales have slowed down the rate of growth in consumer spending
- slower spending on clothes and cars
- "Retail sales can remain in gradual recovery, but it is difficult to maintain the high pace of growth seen earlier this year," said Norio Miyagawa, senior economist at Mizuho Securities. "The weather in August was not good. However, I'm not pessimistic because the labour market is tight."
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Yesterday we got disappointing Overall Household Spending (July) -0.2% y/y (expected 0.7%)
- Real spending was down 1.9% m/m & 0.2% y/y, well under surveyed expectations
- Core measure of spending (excludes spending on housing, certain other volatile items; it aligns more closely with the national accounts measure of consumption) down 0.3% m/m & 0.3% y/y
- Spending on durables +7.9% y/y
- Spending on services + 0.9% y/y
- Spending on semi-durables and non-durables was lower than a year earlier
- Over the three months to July real household spending increased at an annualized rate of 3.0% (q/q); growth in core spending was a little below 0.3%
