Japan, the world’s third largest economy, has revealed that retail sales 3.6 percent more than was forecasted for the month of May.
The issue of consumer spending has been much-discussed in the far-eastern country over recent months, leaving economists predicting a slower rise of only 2.9 percent.
The country is still in a state of recovery following the devastation left by last year’s earthquake in the North, but the regeneration of the regions seems to have brought about renewed consumer confidence and retail presence.
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Continued unrest among Europe’s financial elite has also been cause for concern in regards to exports and foreign profitability, but Prime Minister, Yoshihiko is pushing for sustainable, if not sometimes slow, sales growth.
The country’s economy grew 4.7 percent overall in the first quarter of the financial year, with household outlays thought to be the biggest contributive factor. Similarly, automotive sales also saw staggering improvements, rising 66.3 percent in like-for-like sales.
However, economists are still putting a dampener on the statistics, suggesting that this growth could be short lived, once the rate of reconstruction in Japan begins to die down. A deceleration is expected from next year onwards as a consequence.
Azusa Kato, an economist at BNP Paribas in Tokyo stated: “Looking ahead, there will be few positive factors for Japan’s economy. Japan’s economy probably won’t go into a recession or stall, but it’s unavoidable that the pace of expansion will slow.”
Most recent stock figures saw the Yen traded at 79.46 per dollar.