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We believe we are partly benefiting from improved household spending that reflects consumer optimism around the Japanese government's efforts to stimulate their economy and it's possible that some of the decline in Japanese tourists spending in the U.S. could be showing up in more locally made purchases. Most importantly, we believe the overall sales growth continues to demonstrate the strength of our brand. So the good news is that sales in Japan are performing quite well, but the picture on paper looks different when considering that the yen year-over-year has weakened more than 20% versus the U.S. dollar. As a result, the 7% sales growth in yen translated into a 14% sales decline to $136 million. Our internal sales and earnings forecast for the second half of the year incorporates a yen rate roughly in line with recent levels.
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While batting in the sixth inning, the Braves clinched their title. They were leading the Cubs 3-1 but that became a moot point when the Marlins finished off a 4-2 victory over the second-place Nationals in Washington.
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News that Japanese second-quarter gross domestic product rose by far less than expected was noted in the market, buttraders haven't lost sight of the more salient data from China on Friday. The world's second-biggest oil consumerreported a jump in July manufacturing data and record high crude oil imports. The U.S. Energy Information Administrationexpects China will overtake the U.S. in October as the largest net importer of crude oil and other liquid fuels.
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A pair of PMI surveys of Chinese manufacturers last week showed factory production was slightly stronger than expected in July among larger Chinese manufacturers. Smaller factories, however, remained under pressure.
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