Japan: Consumer spending recovers - Nomura

Analysts at Nomura note that Japan’s consumer spending indices were mixed as average real consumer spending (excluding housing) in the Family Income and Expenditure Survey was down by a sharp 2.4% q-q in Apr-Jun.

Key Quotes

“On the other hand, real retail sales (adjusted by Nomura) were up 1.9% qq. We believe that the supply-side statistics are more reliable owing in part to the differences in the sample sizes, and we believe that consumer spending likely increased q-q in Apr-Jun.”

“We do not, however, believe that consumer spending is strong. Real retail sales were down by a sharp 1.6% q-q in Jan-Mar, owing in part to poor weather. We believe that the steep rise in Apr-Jun was thus largely attributable to a q-q reaction to Jan-Mar, when retail sales were temporarily depressed.”