Modest Japanese wage gains point to cautious consumption outlook

Tokyo

JAPAN'S real wages, which are adjusted for inflation, posted their first gain in 11 months in November, helped by a rise in year-end bonuses, but economists warned that wages are unlikely to keep up with general price increases, which could hurt consumption.

The wage data released on Tuesday suggests that the government still faces obstacles in generating a sustained increase in consumer spending needed to support faster economic growth.

While there are signs that major companies are open to raising wages at annual union negotiations, some economists worry that retailers will raise prices faster than wa…