Japanese real wages tumble 3% despite 0.2% increase in nominal wages
|Japanese Labor Cash Earnings in November broadly missed the mark early Wednesday, with nominal wages printing at 0.2% YoY versus the forecast of 1.5%. Markets expected nominal earnings to hold steady with October's print, and after adjusting for inflation, real wages have declined 3% YoY.
Overall Household Spending for the year ended November also fell further back from the previous period, declining 2.9% YoY in November versus October's YoY -2.5%.
Market Reaction
Early Wednesday market volumes remain thin, and the USD/JPY continues to trade tightly near 144.40.
About Labor Cash Earnings
This indicator, released by the Ministry of Health, Labor and Welfare, shows the average income, before taxes, per regular employee. It includes overtime pay and bonuses but it doesn't take into account earnings from holding financial assets nor capital gains. Higher income puts upward pressures on consumption, and is inflationary for the Japanese economy. Generally, a higher-than-expected reading is bullish for the Japanese Yen (JPY), while a below-the-market consensus result is bearish.
About Overall Household Spending
The Overall Household Spending released by the Ministry of Internal Affairs and Communications is an indicator that measures the total expenditure by households. The level of spending can be used as an indicator of consumer optimism. It is also considered as a measure of economic growth. A high reading is positive (or Bullish) for the JPY, while a low reading is negative (or bearish).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.