Japan's Household Spending Falls as Wage Gains Remain Subdued
Friday, 7 December 2018 08:32 WIB | ASIA |JAPANJepangEkonomi Jepang

Japanese households unexpectedly trimmed spending in October as wages rose modestly, pointing to continued weakness in consumption that could weigh on any rebound from an economic contraction in the third quarter.

Household spending fell 0.3 percent from a year earlier, the seventh decline this year, the ministry of internal affairs said. The median estimate was for a rise of 1 percent. Labor cash earnings rose 1.5 percent from a year earlier, versus an estimate of 1 percent, the labor ministry reported, but inflation ate up those gains and a bit more.

Consumer spending has been the missing link as the Bank of Japan has tried to stoke inflation and sustainable growth in recent years. Expectations that an historically tight labor market will lead to bigger pay increases and spending remain largely unfulfilled.

That weakness in consumer spending becomes a bigger risk for the BOJ as the outlook for exports, a key growth driver, turns murkier due to the U.S.-China trade war and slowing growth in China and other economies.

œHouseholds aren™t really in the mood for shopping given slow wage growth and a tax hike scheduled for next year, Shinichiro Kobayashi, an economist at Mitsubishi UFJ Research & Consulting, said before the results were released.

BOJ Governor Haruhiko Kuroda on Thursday noted that wage growth remains sluggish considering the labor market, but stuck with the central bank™s position that momentum toward 2 percent inflation is maintained. The BOJ holds a policy meeting Dec. 19-20.

Real wages, which are adjusted for inflation, fell 0.1 percent. The median estimate was for a fall of 0.3 percent.

Base salaries rose 1.3 percent.

Source: Bloomberg


Japan's Wage Gains Accelerate in November Despite Gloomy Outlook
Wednesday, 9 January 2019 07:18 WIB

Japanese wages rose more than expected in November, offering hope of stronger consumer spending that could fuel inflation if gains are sustained. Overall labor cash earnings increased 2 percent from a year ago, compared with a 1.5 percent gain in October. The gain was the fourth increase of at leas...

Australia's Economy Expands Less Than Expected; Currency Drops
Wednesday, 5 December 2018 08:08 WIB

Australia's economy expanded less than expected in the three months through September amid sluggish consumption and as commercial construction declined. The currency slumped almost half a U.S. cent. Gross domestic product rose 0.3 percent from the second quarter versus economists' median estim...

Caixin PMI: China factory activity rose in October
Thursday, 1 November 2018 11:33 WIB

Activity in China's factories returned to expansion territory in October after stagnating in September, a private gauge showed, in contrast with official data that showed weaker expansion. The Caixin China manufacturing purchasing managers' index edged up to 50.1 in October from 50.0 in September, ...

China Manufacturing PMI Worsens in October as Trade War Bites
Wednesday, 31 October 2018 08:17 WIB

An official gauge of activity in China's manufacturing sector worsened in October as the effects of an ongoing trade war with the U.S. hit home. The manufacturing purchasing managers index fell to 50.2 this month from 50.8 in September, missing the median prediction of 50.6 in a Bloomberg survey of...

Australia's Core Inflation Weaker Than Forecast in Third Quarter
Wednesday, 31 October 2018 07:54 WIB

Australia's annual core inflation was weaker than forecast in the three months through September, suggesting the central bank™s prolonged interest-rate pause has further to run. Quarterly trimmed-mean inflation, the key core measure, rose 0.4% vs an estimated 0.4%; annual trimmed mean advanced 1....

Hong Kong stocks finish week on positive note (Review)
Saturday, 24 August 2019 04:05 WIB Hong Kong shares ended the week with a healthy rise on Friday as investors look ahead to a key speech later in the day by Federal Reserve boss Jerome Powell hoping for hints at further interest rate cuts. The Hang Seng Index jumped 0.50 percent,...


Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.