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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JAPAN DATA
Japan Nov labor cash earnings data were well below expectations. The nominal outcome printed at 0.2% y/y, versus 1.5% expected. The prior was 1.5%. In real terms, earnings were down -3.0% y/y, against a -2.0% forecast and -2.3% prior.
- The slump in real wages is above earlier 2023 trough points, with a -4.1% y/y drop recorded in January. Still, the trend is not an encouraging one around hopes for a return to positive real wages growth, see the chart below (the white line is nominal earnings).
- The nearly flat y/y nominal outcome, was the softest print since the start of 2022. Bonus payments fell sharply so they may rebound next month as they tend to volatile.
- Positive real wage gains are seen as a key input into the BoJ achieving its inflation target sustainably.
- Today's data is likely to reinforce official calls for stronger nominal wage growth. Several companies and union groups have stated increases this year could be meaningful.
Fig 1: Japan Labor Earnings Y/Y
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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