Japanese retail sales fall for 8th month

[May 28, 2009]  TOKYO (AP) -- Japan's retail sales fell 2.9 percent in April, falling for the eighth straight month, as consumers stayed cautious amid growing jitters about jobs and wages.

Also, sales at big retailers -- a narrower category that includes supermarkets and department stores -- fell 6.7 percent from a year earlier in the 13th straight month of retreat, the Ministry of Economy, Trade and Industry said Thursday.

The figures underscore how the country's steepest recession since World War II is now extending its reach to workers and households.

Like its Asian neighbors, Japan has been battered by the unprecedented collapse in global demand triggered last year by the U.S. financial crisis. Manufacturers such as Toyota Motor Corp. and Sony Corp. have had to suspend production, cut thousands of jobs and reduced wages.

Earlier this week, camera maker Nikon Corp. said it will cut 1,000 jobs, mostly in Japan, in an effort to save 8 billion yen ($84 million) in annual costs.

The aggressive corporate cost-cutting and brighter prospects for global demand are helping companies slowly stir to life. Industrial production is projected to climb in the months ahead, and data Wednesday showed that Japan's export slump eased in April. Japan's central bank also modestly upgraded its economic assessment last week.

But while cost cuts may be benefiting companies, it has left workers vulnerable and nervous.

The unemployment rate in March rose to 4.8 percent, its highest in more than four years, and is expected to climb higher when April figures are released Friday.

Japanese Prime Minister Taro Aso is banking on massive government outlays to spark a turnaround. His newest $150 billion stimulus package consists of programs to bolster consumer spending, which accounts for more than half of Japan's economy.

Steps include incentives to buy energy-efficient appliances and cars, as well as help for the unemployed and small businesses.

[Associated Press; By TOMOKO A. HOSAKA]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.