— Japan Jan Tertiary Index +2.1% M/M Vs Dec Revised -0.9% M/M
— MNI Survey Median Forecast For Jan Tertiary Index: +1.3%
— Japan Tertiary Index Posts 1st M/M Rise In 2 Months
— Japan Jan Tertiary Index +1.4% Y/Y Vs Dec +1.8%
— Japan Tertiary Index Posts 12th Y/Y Rise In Row

TOKYO (MNI) – Japan’s tertiary industry index, which measures
spending in the services sector, rose 2.1% in January from the previous
month, the first rise in two months, on recovery in retail sales, the
Ministry of Economy, Trade and Industry said on Thursday.

The figure came in stronger than the median forecast of a 1.3% rise
in a Market News International survey of economists.

The January rise was the sixth in the past 12 months, was led by
wholesale and retail trade in household appliances as well as utilities
and financial services, followed by a revised 0.9% fall in December
(initially +0.8% m/m).

Many shoppers rushed to retail stores before Dec. 1, when the
government halved the reward points it offers for buying TVs, air
conditioners/heaters and refrigerators that require less power to
operate.

This caused a pullback in sales of consumer electronics in
December but there was a rebound in January.

The seasonally adjusted tertiary index rose to 99.8 in January from
97.7 in December.

The reading of 94.4 marked in March 2009, when the index slumped
3.4% m/m, remains the lowest level on record. The index hit a record
high of 103.5 in August 2007, when it rose 0.9% from the previous month.

From a year earlier, the unadjusted index rose 1.4% in January to
94.0, marking the 12th straight year-on-year rise after rising 1.8% in
the previous month.

The 0.6% rise in February 2010 was the first y/y increase in 19
months since +0.2% in July 2008.

The index posted a record 7.7% year-on-year drop in March 2009.

In the latest month, the industries that showed increased business
from the previous month include: wholesale and retail trade including
sales of household electronics (+3.8% m/m), utilities (+4.9% m/m),
scientific, professional and technical services (+2.1%) and financial
and insurance service (+1.8%).

Among the industries that showed slower business from the previous
month were: accommodations, eating and drinking services (-1.6%),
leisure services (-1.7%) and real estate (-0.2%).

The service sector employs more than half of Japan’s workforce, and
spending on services such as retailing, dining and travel is closely
tied to changes in income and consumer confidence.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835 **

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