Japanese retail sales fall

Japanese consumers: browsing but not buying

Japanese shoppers stayed away from the shops in February, a sign that consumers are continuing to feel the economic slowdown in their wallets.

Larger shops, which are more sensitive to changes in consumer spending, saw retail sales down nearly 3.5% on the year before.

However, speciality outlets selling food and home appliances were beginning to see signs of a pick-up, said the Ministry of Economy, Trade and Industry.

That was countered by a slowdown in sales of fuel, cars and personal computers.

Retail sales in Japan fell by 2.6% in January.

"The large drop is also because shoppers are shifting from department stores to speciality stores, such as outlet shopping malls in the suburbs," said an unnamed official from the Ministry.

"Retail figures remain in a tug-of-war between positive and negative factors," he added.

Economic slump

On Monday, Japan's parliament approved the government's annual budget, aimed at reviving the country's stagnant economy.

It also marks the first spending cut in six years, which is being interpreted as a sign that Japan may be responding to pressures to tackle its massive burden of debt.

Japan is suffering from deflation - prices of goods are actually falling each year.

The main cause of the economic slump has been that consumers are reluctant to spend money.

Last week, the Bank of Japan brought back its zero percent interest rate policy in an attempt to stimulate consumer spending and business investment.