Japan Mar Retail Sales +4.7% Y/Y, Biggest Rise In 13 Years

– Japan Retail Sales Post 3rd Straight Y/Y Rise; Feb +4.2%
– Japan Mar Retail Auto Sales +19.6% Y/Y Vs Feb Revised +14.8%
– Japan Mar Retail Sales Also Pushed Up By Higher Fuel Prices

TOKYO (MNI) – Japanese retail sales surged 4.7% in March from a year earlier, posting the largest year-on-year gain in 13 years, data from the Ministry of Economy, Trade and Industry released on Wednesday showed.

It was the third straight year-on-year increase after an unrevised rise of 4.2% in February.

Higher costs of fuel prices as well as continued solid sales of motor vehicles boosted overall retail sales. Fuels sales rose for the fourth consecutive month from year-earlier levels while auto sales posted the 10th straight y/y gain.

Retail sales have recovered from -5.7% in February 2009, which was the largest y/y drop in seven years. In January this year, retail sales rose 2.3%, posting the first y/y gain in 17 months.

The 4.7% rise in March 2010 was the largest gain since +12.4% in March 1997, which was boosted by rush purchases before the sales tax hike to 5% from 3% the following month.

Excluding this special factor, the March rise was the sharpest rise since +4.7% in February 1992, when sales were pushed up by leap-year effects.

For the whole of fiscal 2009 that ended March 31, retail sales fell 0.4% from a year earlier, down for the second straight year, but the pace of decline slowed from a 1.1% fall in fiscal 2008.

The growth in March retail sales was led by increases in five out of seven major categories: motor vehicles (+19.6%), fuel (+19.5%),machinery (+12.9%), clothing (+8.0%) and food and beverages (+0.6%)

Meanwhile, year-on-year declines were seen in sales at department stores and supermarkets (-4.6%) as well as other retail sales (-4.5%).

The 19.5% rise in fuel sales in March was the fourth consecutive month of y/y gains following +20.5% in February and +11.2% in January.The 9.0% rise in December 2009 was first year-on-year gain in 15 months.

Fuel sales have recovered from the record y/y drop of -23.3% marked in February 2009.

Retail gasoline prices in Japan have been on a general uptrend since mid-January 2009. In the week to April 19, the average price of regular gasoline rose to Y135.2 ($1.45) per liter from Y133.2 a week earlier, posting the seventh weekly rise in a row. It was much higher
than the Y115.1 price of a year earlier.

Motor vehicle sales posted the 10th straight month of y/y gains as demand for passenger cars continued to be supported by tax breaks and subsidies for buying low-emission vehicles.

The 19.6% rise in auto sales in March accelerated from a revised +14.8% in February, +13.1% in January and +14.5% in December 2009, but was slower than +21.0% in November 2009, which was the largest y/y gain since March 1997, when vehicle sales were up 21.1%.

Sales of machinery and equipment also gained 12.9% in March,marking the seventh consecutive y/y gain after +8.7% in February and +3.6% in January, thanks to the government’s reward program for purchases of greener consumer electronics including flat-screen TVs and refrigerators.

Other details from the latest data:

Commercial sales, or combined sales at the wholesale and retail levels (y/y): Mar +2.0%, the first year-on-year rise in 18 months, vs.Feb -0.9% and the record -24.3% marked in May 2009.les at the wholesale level (y/y): Mar +1.1%, also the first year-on-year gain in 18 months, vs. Feb revised -2.7% and the record
-30.3% hit in May 2009.

Large retail store sales on a same-store adjusted basis (y/y): Mar -5.0%, the 24th straight y/y drop, vs. Feb -4.0%.

Large retail store sales, unadjusted (y/y): Mar -4.2%, the 20th consecutive y/y drop, vs. Feb. -3.4%.