(Bloomberg) — Japan’s retail sales increased for a third straight month, as easing virus concerns fueled spending by consumers before the emergence of the omicron variant.
Sales advanced 1.2% in November from the previous month, as shoppers spent more on clothing and motor vehicles, the industry ministry reported Monday. Economists had expected a 1.3% overall gain.
The increase in spending in months when shoppers are less concerned about Covid shows the importance of keeping the spread of omicron under control if consumption is to drive a recovery of the economy. Japan lifted state of emergency restrictions at the end of September.
Japan needs solid consumer spending at home as omicron and supply chain disruptions dampen the prospects for trade helping to drive growth.
Read More: Japan Sticks With Budget Balance Goal Despite Record Spending
While Japan has so far managed to avoid a mass outbreak of omicron even as it rampages in the U.S. and the U.K., the situation could swiftly change.
After finding the first case of community spread of omicron last week in western Osaka prefecture, another case was found Thursday in neighboring Kyoto with other cases confirmed elsewhere over the weekend. The country’s program for vaccine booster shots is yet to get into full swing, though nearly 80% of the population has been fully vaccinated so far.
More details from the report:
- Spending on clothing rose more than 7%, as did outlays for motor vehicles
- Sales of food and drink rose 0.6% from October
- Spending on fuel fell 2.9%
- Compared with a year ago, retail sales increased 1.9%
(Adds detail on spending components)
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