Japanese wages data ... while business surges in Japan, wages lag ... more of the same this month (July data the latest):
Labor Cash earnings -0.3% y/y
- expected 0.5% y/y, prior 0.4%
- first decline since May 2016
Real cash earnings -0.8% y/y
- expected 0.0% change y/y, prior -0.1%
- Down for a second consecutive month
- biggest decline since June 2015
Special payments (mainly these are summer bonuses)
- down 2.2% y/y
- first drop since January
Regular pay (determines base wages)
- up 0.5% y/y
- up for a fourth straight month
Overtime pay
- +0.1% y/y
Falling wages being blamed on drops in summer bonus payments
Falling wages are an issue, probably most notably for the economy because they highlight the fragility of the sustainability of a recent improvement in consumer spending.
More ... comments from the Finance Ministry:
- "Excluding the decline in special payments, wages remain in moderate increase,"
