TOKYO, April 28 - Sales at Japanese stores fell for the 24th straight month in March as consumers fretted over declining wages and uncertain job prospects. Retail sales dropped 1.0 percent, while sales at large stores open more than a year, a measure of stores' core business, fell 2.7 percent, the Ministry of Economy, Trade and Industry (METI) said on Monday. "There is no change in our view that sales overall are in a weak trend," a METI official told a briefing. He added that strong car sales pointed to some improvement but it was too early to say whether this was a trend. The continuing fall in sales highlights the concern many Japanese feel over the prospects for wages and job security in a society where employment for many has traditionally been guaranteed for life.
At the root of the concern is the vicious circle of problems trapping the domestic economy: companies facing falling profits cut staff and wages; workers worried about jobs and pay spend less, cutting demand; demand falls so companies reduce output, hitting their profits. Real disposable income in the first three months of this year fell 5.9 percent, the biggest drop in 29 years. For consumers, that means cutting back spending or dipping into savings. Figures last week showed that household spending fell 2.3 percent in March from a year earlier, the sixth straight month of declines.//