Japan Oct real wages rise, offering hope of consumption pick-up
[TOKYO] Japanese wages rose for the fourth straight month in October on an annual and inflation-adjusted basis, data showed on Friday, offering some hope a gradual increase in household income will underpin private consumption.
Wage hikes are crucial to the success of Prime Minister Shinzo Abe's stimulus policies, which aim to nudge companies into using their huge cash piles on wages so that households can keep spending - generating a positive cycle in the economy.
Real wages, adjusted for inflation, rose 0.4 per cent in October from a year earlier after a revised 0.3 per cent gain in the previous month, as nominal wages outpaced tame inflation, data by the labour ministry showed.
Total cash earnings rose 0.7 per cent in October from a year earlier, increasing for the fourth straight month. Regular pay, which determines base salaries, edged up 0.1 per cent, the data showed.
"Wages are increasing gradually with resilience seen both in nominal and real terms," a labour ministry official said.
Overtime pay, a barometer of strength in corporate activity, rose an annual 1.2 per cent, the data showed.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Blinken meets Chinese counterpart Wang Yi in Beijing
South Korea’s public finances no longer a credit rating ‘strength’: Fitch
UK consumer confidence improves as inflation and taxes fall
Inflation in Japan’s capital falls below BOJ target, slows for second month
China firms are investing abroad at fastest pace in eight years
Sri Lanka’s economy expected to grow 3% in 2024, central bank says