Inflation adjusted wages fell again, but not as much as expected (try that excuse on workers!)
Labor Cash earnings +1.3% y/y
- expected 0.5% y/y, prior 1.2%, revised from 0.7%
Real Cash earnings -0.5% y/y
- expected -1.2% y/y, prior -0.9%
Real earnings fell for the third consecutive month
- The likely impact is that consumer spending could slow
- It will also slow an wage-gain fuelled inflation pressure
More:
- Overtime pay +1% y/y
Also, some comments on the poor spending data out earlier (Japan data - Household spending big miss on estimates: Down 0.1% y/y (vs. exp +0.4%)) from a Japanese govt official:
- pick-up in consumption stalling
- February's drop in household spending may be due to temporary factors like heavy snow, cold weather
