22.10.2021

Retail sales in Japan rose more than forecast

Retail sales in Japan in April surpassed analysts ‘ expectations, returning to growth after March’s decline, according to Bloomberg.

Retail sales in Japan last month jumped 1.4% compared to March. Surveyed by Bloomberg analysts predicted growth of only 0.5%. In March, according to revised data, sales fell by 0.6%.

In annual terms, retail sales increased in April by 1.6%. Experts predicted growth of 1%.

Sales in Department stores and supermarkets dropped by 0.8% yoy instead of the expected growth of 0.2%.

The increase in domestic consumption remains a key factor to the recovery of the Japanese economy became stable.

The salary in the country is increasing as companies hire more permanent employees full-time employment, giving households more purchasing power.

As reported “Vesti.Economy”, the unemployment rate in Japan, taking into account seasonal fluctuations in April was 2.5%, unchanged from the previous month. Evidence suggests that conditions in the labour market remain severe.

Japan’s GDP in I quarter has decreased by 0.6% compared to the same period last year as investment declined, and the volume of personal consumption has not changed.

The increase in spending could support economic recovery and to help the Bank of Japan in his quest to achieve 2% inflation target.

Unemployment in Germany is at its lowest level since 1990

Unemployment in Germany reached a record low in may as the number of unemployed has fallen, according to data that reflect the stability of the labour market, which has become a key driving force of economic recovery caused by the consumers.

According to the Federal labour office the number of unemployed in Germany fell by 11 thousand to 2,358 million people. In a Reuters poll expected that the number will decline by only 10 thousand

This led to the fact that the unemployment rate fell to 5.2%, said the Agency, which is the lowest figure since reunification in 1990

“Unemployment and underemployment fell again, employment in the framework of the social security system continues to grow, and the demand for labour remains high,” reads the statement of the chief Minister Detlef Scheele.

“The upward trend in the labour market continues, although more slowly than in the winter months,” he said.

The Minister of labour Mr Hale said he wants to reduce the contributions for unemployment insurance by 0.3 percentage points to 2.7% from nominal wages by 2019. This will amount to total annual savings of around EUR 3.5 billion for employees and employers, he said.

Most of the 800 thousand vacancies registered in may were permanent, full-time jobs with contributions to social insurance. Workers were mainly interested in the construction, transportation and warehousing, as well as social and medical assistance.

A strong labor market is likely to further enhance consumer confidence and household spending in Europe’s largest economy, which in recent years began to rely on domestic demand, not exports, as the main growth factor.

Economist KfW jörg Zeuner said that German companies have become more cautious due to trade tensions with the United States.

“However, the rise of the end is not in sight. Companies in all sectors of the economy continue to hire workers,” he added.

The ECB will not intervene in the situation in Italy

The European Central Bank (ECB) closely monitors the markets and a political crisis in Italy, but sees no reason to intervene in the situation at the present time, the sources said Reuters.

Market speculation about a possible intervention of the Central Bank in the situation emerged after the political parties have repeatedly failed to form a government. In addition there were forecasts of a possible Italian exit from the Eurozone.

But three sources told the news Agency that the ECB is not considering intervention, as most indicators do not show signs of stress in the banking sector, the Central Bank has no tools or mandate to solve what essentially is a political crisis.

As reported “Vesti.Economy,” Italy was on the path to new elections after the country’s President Sergio Mattarella appointed the former official at the International monetary Fund Carlo Cottarelli to form an interim government.

Earlier, the lawyer Giuseppe Conte, whose candidature of the party “five star Movement” and “the League” offered for the post of Prime Minister, abandoned efforts to form a government, as Mattarella opposed the appointment of eurosceptic Paolo Savona for the position of Minister of economy and Finance.

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