The average income level in Japan goes up in February

The average income level in Japan goes up in February

The change in the level of wages - an indicator published by the Ministry of Health, Labor and Welfare of Japan, and showing the average income level of a full-time employee before taxes, headed north 1.3% in February. Apparently, it surpassed expectations of a 0.5% jump after the updated previous value from 0.7% to 1.2%

The calculation of this indicator takes into account compensation for overtime work and bonuses, but it does not take into account the profit received in the form of interest on financial assets or income from capital gains. The increase in wages actually contributes to the growth of consumption, and as a result, the upward trend in the wage indicator is considered to be the inflation factor for the Japanese economy.

In addition to this, it has also become known that real monetary incomes headed south 0.5% in February year on year. It followed an updated sag of 0.6% in January.

Overtime payments, which appears to be the barometer of strength in corporate activity, inched up 1% versus January’s outcome of 0.1%.

Aside from that in February special payments, including bonuses, edged up 3% year-on-year following an updated outcome of 2.9% per annum in January.

As can be seen from the data, the real wages of Japanese workers went down for the third consecutive month in February after adjusting for inflation and it happens to be an alarming sign that consumer spending might speed down because wages are unable to keep pace with leaping prices.

The data also backs the view that the Bank of Japan target inflation rate of 2% will most probably remain remote, thus dropping a hint that Japan’s key bank won’t start reducing the scale of the stimulus program in the near future.

Similar

Market updates on August 15

The risk sentiment remains under pressure after the comments by China about the countermeasures against the US tariffs. Thus, the AUD/USD and the USD/JPY pairs will be under our attention.

Latest news

German exporters don’t care about stronger euro

German exporters demonstrate ascending optimism as for their business prospects because growing demand from other euro zone countries helps to compensate worries regarding the strengthening currency, as the Ifo economic institute told on Wednesday…

Japan's October machinery orders tack on

In October, Japanese machinery orders rebounded with a faster soar than anticipated, thus re-affirming the resilience of capital spending, which is a major driver in the Japanese economy's almost two-year expansion…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera