Japan's retail sales rise for two consecutive months, but Omicron risks loom...

According to foreign media reports , Japan's retail sales growth in November exceeded expectations, as the decline in new coronavirus cases that month prompted shoppers to increase spending on goods and services.

To support the economy, the government approved a record $940 billion budget for fiscal 2022, which includes cash payments to households and businesses affected by the pandemic.

Japanese government data released on Monday showed that retail sales rose 1.9% in November from a year earlier, beating economists' median forecasts of a 1.7% increase in October and a 0.9% increase.

Fuel sales rose 29.2% in November from a year earlier, boosting overall retail trends as commodity prices soared , while supply chain bottlenecks caused car sales to fall 14.1%, electronics sales to fall 10.6%, and demand for home appliances to fall.

Compared with the previous month, retail sales increased a seasonally adjusted 1.2% in November after a downwardly revised increase of 1.0% in October.

However, this consumption-driven economic recovery is likely to be thrown into doubt by the emergence of the novel Omicron coronavirus , which began spreading in communities in Japan's largest cities after mid-December .

"Consumers have not been too concerned about Omicron so far as foot traffic data still shows an increase , " said a senior economist at Dai-ichi Life Research Institute .

The Japanese government said last week that due to the impact of the new coronavirus variant Omicron , the government is not considering immediately changing the domestic new coronavirus prevention restrictions.

"If there is a surge in new infections ... then there is a risk that the current consumption trend will be affected by Omicron , " said a relevant person . And travelers returning during the holidays may spread the infection.

The number of Covid-19 cases detected nationwide fell to less than one per million people each day earlier this month after the government lifted restrictions in September .

No restrictions have been reinstated , apart from strict border controls that have interrupted the spread of the new omicron variant .

The world's third-largest economy will grow at an annualized rate of 6.1% in the current quarter, according to the latest Reuters poll of economists.

Japan's November retail sales rise

Omicron remains a threat