Japanese Retail Trade in October backslides more than expected, printing 4.2% versus the expected 5.9%


Japanese Retail Trade for the year into October missed the mark after printing at 4.2% compared to the median forecast of 5.9%, while the previous period saw an upside revision from 5.8% to 6.2%.

October's MoM Retail Trade accelerated declines, coming in at -1.6% compared to September's -0.1%Q print.

Japanese Large Retailer Sales held on the upside, printing at 4% in October, but still fell back from September's reading of 5% MoM.

Market Reaction

The USD/JPY is holding steady just above the 147.00 handle after testing into an early Thursday low of 146.84 prior to the data release.

About Japan's Retail Trade 

The Retail Trade released by the Ministry of Economy, Trade and Industry captures the aggregate sales made through a business location (usually a store) in which the principal activity is the sale of merchandise and related services to the general public, for household or personal consumption. Consumer spending is a key important indicator for the Japanese economy. A high reading is positive for the JPY, while a low reading is negative.

About Japan's Large Retailer Sales

The Large Retailer Sales released by the Ministry of Economy, Trade and Industry captures the total value of goods sold in large stores, chain convenience stores, and supermarkets. It indicates the level of consumption and consumer confidence. A high level of Large Retailers´ Sales stimulates economic expansion while a low level drives to economic downturn. A high reading is positive for the JPY, while a low reading is bearish.

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