East Asia Econ

Japan – stronger wage growth, probably

Wage growth in Japan is solid, and the macro backdrop, such as today's services PMI, indicates is probably accelerating. However, the pick-up isn't showing up in all the data.

Paul Cavey

Jun 5, 2024 • 2 min read

Subscribers Only

China – a weak nominal upturn

While the PMIs don't point to any real improvement, in nominal terms there's been a lift, with input prices above 50 again. That's in line with the credit impulse. But the credit impulse might already have turned, and while PPI deflation has lessened, output prices don't suggest stronger CPI.

Subscribers Only

East Asia Today

It's been a big week for data in Korea, and there was more today, with the end-month activity numbers. Retail sales bounced, but other sectors remained subdued. Data for Japan today showed retail sales being weak, but consumer confidence has improved, and UE has fallen to a new post-covid low.

Subscribers Only

Japan – UE falls to post-covid low

The fall in the UE rate in July to 2.3% isn't substantively important. The mechanics behind it were more noteworthy, in particular a ticking down in the part rate. Other data today show a softening of inflation in Tokyo in August, and nationwide retail sales falling to the lowest level in 2 years.