Japan Retail Sales Rise As Travel Subsidies Boost Spending

(RTTNews) - Japanese retail sales continued to increase in November as the travel subsidy program initiated to stimulate the tourism sector boosted consumer spending and unemployment rate was the lowest in three months, official data revealed.

Retail sales grew 2.6 percent in November from the same period last year. This was the ninth consecutive rise in sales, the Ministry of Economy, Trade and Industry reported Tuesday.

However, growth was weaker than October's 4.4 percent and also less than economists' forecast of 3.7 percent.

On a monthly basis, retail sales decreased 1.1 percent, reversing a 0.3 percent rise in October.

The government had launched a travel subsidy program for residents of Japan in October. The scheme provides discounts and coupons equivalent to JPY 11,000 per traveler per day.

The seasonally adjusted unemployment rate fell to a three-month low of 2.5 percent from 2.6 percent in October, the labor force survey from the Ministry of Internal Affairs and Communications showed. The rate was in line with expectations.

The jobs-to-applicants ratio stood at 1.35 percent, unchanged from October.

The number of people out of work decreased 180,000 from the last year to 1.65 million. Unemployment decreased in the each of the past 17 months.

At the same time, employment registered an annual increase of 280,000 from a year ago to 67.24 million. This was the fourth consecutive rise.

Official data earlier this month showed that the economy contracted less than estimated in the third quarter. GDP shrunk 0.8 percent in the third quarter, which was revised up from the 1.2 percent fall estimated previously.

The International Monetary Fund had forecast Japan's growth to be more stable at 1.7 percent in both 2021 and 2022 and 1.6 percent next year.