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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
May household spending was weaker than expected. Real spending fell 1.8% y/y, against a +0.3% market consensus (BBG), while the prior outcome was +0.5%. In m/m terms spending was down 0.3%.
- In terms of the detail, real spending on food, housing, utilities, furnishings, clothing and recreation were all negative in y/y terms. Medical and education were the main positives.
- This drop undermines the BoJ/government view of firmer consumption aiding the broader economic outlook. The authorities had been hopeful that rising wages would spur firmer household spending.
- Still, it is not all bleak. A measure of household incomes released this morning as showed real incomes in 3% in y/y terms. This shift was aided by base effects but was still the firmest y/y pace since end 2021.
- The chart below plots this metric against real household spending. The authorities will be hopeful this aids stronger real spending trends in the months ahead.
- Note on Monday we get May labour cash earnings figures.
Fig 1: Japan Real Household Spending & Income Growth
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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