Japan's Retail Sales Rise 1.9% and Industrial Production Falls 1.5%

Hiruki Nakamura
30 Sep, 2014
New York City

Stocks in Tokyo responded to the latest economic data. Retail sales increase of 1.9%, ahead of expectations, and jobless rate decreased to 3.5%. Industrial production declined 1.5% unexpectedly. The yen declined traded above 109 level against one dollar.

[R]4:30 PM Tokyo – Stocks in Tokyo responded to the latest economic data. Retail sales increase of 1.9%, ahead of expectations, and jobless rate decreased to 3.5%. Industrial production declined 1.5% unexpectedly. The yen declined traded above 109 level against one dollar.[/R]

Japan’s industrial production declined unexpectedly in August from the previous month and retail sales were ahead of expectations according to data released by the government.

The Ministry of Economy, Trade and Industry said industrial production in August dropped 1.5% followed by 0.4% gain in July.

On a yearly basis, industrial production declined 2.9% compared to 0.7% decrease in the previous month.

Shipments in August slumped 1.9% from July increase and slipped 3.5% from a year ago month.

In a separate report, the department reported retail sales in August jumped 1.2% to 11.45 trillion yen, this compared to upwardly revised increase of 0.6% in July from original estimate of 0.5%.

Household spending fell for fifth-month in a row by 0.3%.

Sales from large retailers climbed 1.6% to 1.63 trillion yen following 0.6% decline a month earlier.

On a seasonally adjusted monthly basis, retail sales climbed 1.9% after declining of 0.5% in July.

Wholesale sales dropped 2.8% to 25.39 trillion yen from a year ago month while commercial sales declined 1.6% to 36.84 trillion yen.

The Ministry of Internal Affairs and Communications reported seasonally adjusted unemployment rate in August slipped 3.5%, less than forecast for 3.8% and unchanged from the July reading.

The Nikkei 225 Stock Average slipped 137.12 or 0.8% to 16,173.52 and the broader Topix index fell 11.01 to 1,326.29.

For the month, Nikkei 225 soared 4.8% and for the quarter surged 6.6%.

The yen traded near 109.71 against one U.S. dollar.

Stocks in Review

Nihon Enterprise Co., Ltd declined 2.3% to 465 yen after the mobile content provider stated net sales in the first-quarter ending in August soared 15.6% to 1.32 billion yen from 1.14 billion yen a year ago period.

Net income in the quarter surged 159.1% to 212 million yen compared to 81 million yen and diluted earnings per share jumped to 5.53 yen from 2.17 yen a year earlier.

Tri-Stage Inc fell 0.5% to 1,274 yen after the ad agency said net sales in the second-quarter ending in August plunged 15.4% to 16.27 billion yen from 19.23 billion yen a year ago period.

Net income in the quarter tumbled 31.3% to 237 million yen compared to 345 million yen and diluted earnings per share dropped to 31.78 yen from 46.28 yen a year earlier.

Star Micronics Co., Ltd slipped 0.9% to 1,613 yen after the machinery and electronic component maker reported net sales in the second-quarter ending in August climbed 18.6% to 22.84 billion yen from 19.25 billion yen a year ago period.

Net income in the quarter surged 831.4% to 2.12 billion yen compared to 227 million yen and diluted earnings per share soared to 50.09 yen from 5.39 yen a year earlier.