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31 Mar 2015
Japanese wage growth expected to slow - Capital Economics
FXStreet (Bali) - Marcel Thieliant, Economist at Capital Economics, expects Japanese wage growth to have slowed in February.
Key Quotes
Labour cash earnings (02.30 BST) continued to grow strongly in January even as the winter bonus season came to an end. However, the share of bonus payments should continue to diminish in February, so wage growth should have slowed. Our forecast is a 1.0% y/y rise in February following January’s 1.3% y/y increase.
The 3.4% m/m fall in industrial production in February (released on Monday) mostly reversed the 3.7% m/m jump in January. Firms predict another 2.0% m/m decline in production in March, though they expect a 3.6% m/m rise in April. Assuming these projections were realised, output would have risen at a slower pace in Q1 than in Q4 2014.
Key Quotes
Labour cash earnings (02.30 BST) continued to grow strongly in January even as the winter bonus season came to an end. However, the share of bonus payments should continue to diminish in February, so wage growth should have slowed. Our forecast is a 1.0% y/y rise in February following January’s 1.3% y/y increase.
The 3.4% m/m fall in industrial production in February (released on Monday) mostly reversed the 3.7% m/m jump in January. Firms predict another 2.0% m/m decline in production in March, though they expect a 3.6% m/m rise in April. Assuming these projections were realised, output would have risen at a slower pace in Q1 than in Q4 2014.