To stimulate consumption, Prime Minister Shinzo Abe enacted an economic stimulus package in October and is now urging corporations to give generous wage raises ahead of annual pay negotiations with labor unions next year….
According to the Ministry of Economy, Trade and Industry report, Japanese retail sales went down for an eighth month running in October, however, the fall was much smaller than expected in a sign the economy was showing positive signals in the fourth quarter. Retail sales dropped at an annualized 0.1% last month, following a 1.7% drop in September. A median estimate of economists called for a 1.5% year-over-year decline. Japan's unemployment rate was unchanged in October, while job availability advanced slightly, pointing to continued strength in the domestic labour market. As data shows, the unemployment rate came in at 3% in October, unchanged from the previous month. A median estimate of economists also called for no change.
In the meantime, A steady labour market has not translated into faster consumer spending, as Japan continues to struggle with deflationary pressures. Overall household spending decreased 0.4% in the 12 months through October, following a 2.1% annualized drop the prior month. Economists, in turn, were expecting a year-over-year decline of 0.6%.
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