Japan's Heavy Snow Hurting Consumption

Tokyo, Feb. 18 (Jiji Press)--Heavy snow that hit Japan earlier this month is seen to have had a negative impact on personal consumption, economists said. In addition to mountainous areas in eastern Japan, the three major metropolitan areas of Tokyo, Osaka and Nagoya also got covered with snow for two consecutive weekends in February. The snow disrupted consumer traffic, a blow to retail and other sectors that bank on rush demand that is gaining momentum ahead of a planned consumption tax hike in the country in April. "Damage is expected in some consumption-related industries" such as retailers and restaurants, said Koya Miyamae, senior economist at SMBC Nikko Securities Inc. The pace of increase in department store sales in February "may be slower than in the previous month," Miyamae said. The tourism industry also appears to have been affected in many parts of the country. In Yamanashi Prefecture, central Japan, where record snowfalls were reported, a tour bus was stranded and passengers were rescued by Self-Defense Forces personnel. The snow also had a serious impact on the supply side. Due to paralyzed transportation systems, some convenience stores in mountainous areas had to be shut as they were unable to receive supplies of goods to sell. Parcel delivery companies were forced to suspend services in such areas. "The trend (of economic recovery) remains unchanged," said Hideo Kumano, chief economist at the Dai-ichi Life Research Institute. "But the snow could be a disturbing factor" such as pushing back pre-tax hike purchases, Kumano said. END