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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 Dec wages and household spending data was weaker than the consensus forecasts. Labor cash earnings rose 1.0% y/y for Dec, against a 1.4% forecast and 0.7% prior. Real earnings were -1.9% y/y, versus -1.5% forecast and -2.5% prior. Scheduled full time pay (same base) in y/y terms rose 2.0% in line with the consensus and the prior outcome. Cash earnings, measured on an equivalent basis were +1.5% y/y (prior 2.0%).
- Houshold spending was down -0.9% m/m and -2.5% y/y (against a projected -2.0% and prior -2.9%).
- The detail on wages showed sequential improvement versus the Nov outcome, albeit remaining within broad ranges, see the chart below for real and nominal wage trends in y/y terms.
- Bonus payments were +0.5% y/y, but remain volatile. Hours worked also slipped to -0.6% y/y.
- We saw steadier trends on the same sample base y/y figures, albeit again with outcomes remaining within recent ranges. At the margin this may encourage the authorities that underlying wages trends are improving.
- Household spending was slightly higher in nominal y/y terms, while the real y/y trend improved, albeit remaining comfortably in negative territory.
- Feb/Mar shape as key months around wage outcomes, as the government and unions push for firm increases, while the BoJ watches for gains that can help achieve a sustainable 2% inflation target.
Fig 1: Japan Wage Trends - Y/Y
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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