Japan retail sales slump in October

Japan's retail sales were down in October, the most in 11 months as consumers purchased fewer cars and televisions, which added to pressure on government to stimulate an economy that might be entering a recession.

According to the trade ministry, sales were down 1.2 per cent from a year earlier following a 0.4 per cent rise in September.

Retail sales by machinery and equipment businesses fell 5.8 per cent in October from a year ago as purchases of flat- panel televisions slumped.

Flagging consumer demand is slowing growth in world's third-largest economy ahead of the elections set for 16 December. Candidates from the two largest political parties have said they would boost expansion with additional spending fall in exports for a fifth month in October and stagnant wages.

According to some economists Japan's consumption has been slackening since September, with the government terminating subsidies for energy-efficient car purchases. They add weakening overseas demand had hit employment and wages, discouraging consumer spending.

Japanese stocks rose, with the Nikkei 225 Stock Average set to rebound from yesterday's loss following Goldman Sachs Group Inc saying shares would benefit from policy changes if the opposition were to win the election next month. The Nikkei rose 1 per cent at the end the day in Tokyo, while the yen was down 0.1 per cent to 82.16 per dollar after touching a seven-month low of 82.84 last week.