July 08, 2024 00:07 GMT
Headline Earning Misses, But Details Stronger
JAPAN DATA
Japan labour cash earnings were a mixed bag. The headline estimates were a touch below market consensus expectations. The nominal headline rose 1.9%y/y, versus 2.1% forecast and 1.6% prior (which was revised down from an initial read of 2.1%). Real earnings remained comfortably negative at -1.4%y/y (forecast was -1.2% y/y and prior -1.2%). See the top panel on the chart below.
- Still, an offset comes from the figures using the same sample base. They were stronger than forecast. Cash earnings rose 2.3%y/y (forecast 2.1%, prior 1.8%). Scheduled full time pay was 2.7% y/y, versus 2.2% forecast and 2.1% prior. This rose a record in y/y terms, these metrics are presented below.
- The detail on the headline results also showed scheduled pay up 2.5%, a firm uptick on the 1.8% rise seen in April. This was the strongest rise since 1993. Bonus payments were down -8.2%y/y, which was a drag on the headline result.
- All in all, this should add to the case for a further unwinding of the BoJ's accommodative stance.
Fig 1: Japan Wage Trends Y/Y
Source: MNI - Market News/Bloomberg
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