Japanese wage growth slowed in August and summer bonuses stood lower than last year, government data showed, boding ill for consumer spending needed to rev up the flagging economy.
Real wages, adjusted for inflation, rose just 0.2 percent year-on-year, slowing from a revised 0.5 percent gain in July, as nominal wages are slow to keep up with price increases of food and daily necessities, undermining the purchasing power of households.
Tepid wage growth will pile more pressure on policymakers facing fears of a recession while struggling to generate a virtuous growth cycle led by private-sector activity.
(Source: The Japan Times Online)