By Max Sato
(MaceNews) – Here are the key Japanese economic events for the coming week.
In the previous week, the Bank of Japan’s quarterly business survey for June showed confidence among major manufacturers unexpectedly posted a slight pickup, led by steel mills, oil refineries and paper/pulp makers thanks to lower materials costs, while producers of vehicles, metals and general machinery suffered a modest setback in the face of Trump tariffs on automobiles, metals among other goods. Real household spending posted a sharp 4.7% rebound on year in May, backed by an auto sales recovery in from Toyota group output and shipment suspensions in early 2024.
– Monday, July 7
0830 JST (1930 EDT/1630 PDT Sunday, July 6) The Ministry of Health, Labour and Welfare releases May wages.
Total monthly average cash earnings per regular employee in Japan are expected to post their 41st straight year-on-year rise, up around 2.0% in nominal terms in May after rising 2.0% in April, led by a modest uptrend of base wages. Real average wages, however, are expected to mark a fourth straight y/y drop after slumping 2.0% in April.
May household spending data showed average real household income edged up 0.4% in May, after being flat in April. In nominal terms, income rose 4.4%, slightly above the previous month’s 4.1% gain.
– Thursday, July 10
0850 JST (1950 EDT/1650 PDT Wednesday, July 9) The Bank of Japan releases June corporate goods price index.
Producer inflation in Japan is expected to ease further to a 10-month low of +2.7% on year in June after slowing to +3.2% in May from +4.0% in April and a nearly two-year high of +4.3% in March in light of renewed subsidies for gasoline, diesel and heating oil and against the backdrop of slowing global demand. Crude oil prices also slipped back toward the end of June after surging in the middle of the month when the United States joined Israel in attaching Iran’s nuclear facilities.
On the upside, farm produce prices remain elevated in the aftermath of protracted domestic rice shortages since last year (although easing gradually) and global bird flu outbreaks earlier in the year.
The CGPI is forecast to post a 0.2% drop on the month in June as the recent appreciation of the yen has lowered import costs and fuel prices have eased.