We had a bit of data out of Japan earlier - jobs looking good but spending a bit mixed:
- Japan data - Overall Household Spending -0.1% y/y (expected 1.3%)
- Japan Retail sales for December +3.6% y/y beats expected (+2.2%)
Says Bloomberg: ... Key Takeaways
- A sustained pickup in consumer spending is needed for Japan's export-driven economic recovery to become more robust and self-sustainable. Solid economic growth and demographics mean the labor market will remain exceptionally tight. While wages and spending have improved, the kind of gains needed to drive inflation higher has eluded workers, with the focus of policy makers and analysts now on this year's spring wage negotiations.
- Labor demand in Japan rose in December to its highest in more than 40 years, which could give labor unions extra leverage in impending spring wage negotiations.
