Restaurant and retail sales down in June but outlook up in July

Receipts at restaurants and sales at retailers dropped in June compared to the previous month and last year, according to government statistics. Chinese restaurant receipts fell 6.4% month-to-month while Western restaurants rose 11.5%. Several retailers also declined, including watches, clothing and cosmetics. However, motor vehicle retailers increased. Despite June’s losses, 42% of restaurants and 35% of retailers expect higher sales in July, according to business outlook indices. Japanese and Korean restaurants and cosmetics retailers were among the most optimistic. The indices were above 50, signaling expectations of better business conditions next month.