December Consumer Spending Falls in Japan

Retail sales in Japan fell 0.3 percent in December, leading 2006 retail sales to a marginal 0.2 percent rise. Seasonally adjusted, retailers' revenues declined 0.2 percent compared to November, the Trade Ministry said.

Large retailers and department stores were hit especially hard. Their sales dropped 3.4 percent and 2.3 percent respectively, according to the Japan Department Stores Association.

For the quarter, consumer spending fell 0.9 percent, the biggest drop since 1997.