Japanâs wages fell at the fastest pace on record in June as companies cut bonuses to protect dwindling profits, adding to evidence that consumers are unlikely to contribute to an economic recovery. Monthly wages including overtime and bonuses dropped 7.1 percent from a year earlier to 430,620 yen ($4,500), the sharpest decline since the survey began in 1990, the Labor Ministry said today in Tokyo. Bonuses shrank 14.5 percent. http://www.bloomberg.com/apps/news?pid=20601068&sid=aqNM6YBLzUfA Less money to spend...
It's slightly interesting that the survey was established near the all-time high of their market........(when new "surveys" are created, be careful.)
This is something to take notice. Wages are sticky. Prices aren't. To see such a big drop in wages, that's significant. Perhaps not alarming, as bonus pay and overtime appears to be a large part of Japanese wage structure?
That's much more alarming : Japan's core consumer price index fell 0.2% in June, or 1.7% lower than a year earlier, the Ministry of Internal Affairs and Communications said Friday. he ministry also said that average household spending fell in June by 1.7% from the year before, in nominal terms to 277,237 yen ($2,901). Adjusted for inflation, however, real household spending inched 0.2% higher. Adjusted for "inflation" ???? LOL !!!! Lower wages,alarmingly lower prices and falling household spending reminds me of what exactly...?
A bunch of "Public Relations People" who are unfamiliar with the concept of deflation, even after the 1990's.