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Economy

Japan’s spending downturn, wages decline heighten pressure on economy

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1 year ago

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TOKYO — Japan’s consumer spending unexpectedly fell in March at the fastest rate in a year, while real wages marked a twelfth month of decline on persistent inflation, highlighting the challenges facing the economy in mounting a strong post-COVID revival.

Tuesday’s government data also reinforce the uncertainties around the Bank of Japan’s policy outlook amid slowing global growth and financial sector worries even as expectations build for a phasing out of its ultra-easy monetary settings.

“Rising prices, while somewhat moderated by the government’s energy subsidy programs, have put downward pressure on consumption by shaving households’ real purchasing power,” said Masato Koike, economist at Sompo Institute Plus.

Household spending fell 1.9% in March from a year earlier, the data showed, against economists’ median forecast for a 0.4% rise and following a 1.6% gain in February.

It marked the biggest decline since March 2022’s 2.3%, when Japan was still trying to curb the spread of coronavirus.

On a seasonally adjusted, month-on-month basis, spending decreased 0.8%, versus an estimated 1.5% increase and posting a second month of decline after being down 2.4% in February.

For the full fiscal year 2022 that ended in March, household spending rose 0.7%, slowing from 1.6% expansion in fiscal 2021.

Separate data showed Japanese real wages falling 2.9% in March, marking the full year of declines that started in April 2022 on decades-high consumer inflation.

Despite the boon from eased COVID-19 restrictions on domestic shoppers and international travelers, accelerating prices have put a lid on Japan’s consumption-led recovery from the pandemic.

Moreover, while large firms concluded three-decade-high wage hikes at their March labor talks, whether the trend spreads to smaller businesses is key to the outlook for monetary policy normalization under the new BOJ Governor Kazuo Ueda.

Looking ahead, analysts say slowing price inflation will lead to a rebound in pay in real terms.

Japan’s economy likely expanded an annualized 1.4% in January-March and is set continue growing at the same pace in April-June, economists in the latest Reuters poll showed last month. (Reporting by Kantaro Komiya Editing by Shri Navaratnam)

 

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Economy

S&P/TSX composite up more than 100 points, U.S. stocks also trade higher

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22 hours ago

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October 9, 2024

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in the technology and base meta sectors, while U.S. stock markets also climbed higher.

The S&P/TSX composite index was up 106.70 points at 24,179.21.

In New York, the Dow Jones industrial average was up 280.87 points at 42,361.24. The S&P 500 index was up 26.51 points at 5,777.64, while the Nasdaq composite was up 69.52 points at 18,252.44.

The Canadian dollar traded for 73.08 cents US compared with 73.22 cents US on Tuesday.

The November crude oil contract was down 67 cents at US$72.90 per barrel and the November natural gas contract was down eight cents at US$2.66 per mmBTU.

The December gold contract was down US$2.30 at US$2,633.10 an ounce and the December copper contract was down five cents at US$4.41 a pound.

This report by The Canadian Press was first published Oct. 9, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite down nearly 100 points, U.S. stock markets move higher

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2 days ago

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October 8, 2024

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TORONTO – Canada’s main stock index lost nearly 100 points in late-morning trading, weighed down by losses in the energy and base metal sectors, while U.S. stock markets climbed higher.

The S&P/TSX composite index was down 96.78 points at 24,005.93.

In New York, the Dow Jones industrial average was up 42.35 points at 41,996.59. The S&P 500 index was up 43.17 points at 5,739.11, while the Nasdaq composite was up 215.69 points at 18,139.59.

The Canadian dollar traded for 73.15 cents US compared with 73.48 cents US on Monday.

The November crude oil contract was down US$3.42 at US$73.72 per barrel and the November natural gas contract was down two cents at US$2.73 per mmBTU.

The December gold contract was down US$32.20 at US$2,633.80 an ounce and the December copper contract was down 11 cents at US$4.46 a pound.

This report by The Canadian Press was first published Oct. 8, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports $1.1B merchandise trade deficit for August

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2 days ago

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October 8, 2024

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OTTAWA – Statistics Canada says the country posted a merchandise trade deficit of $1.1 billion in August as lower oil prices weighed on exports.

The agency says the result compared with a revised deficit of $287 million in July. The initial reading for July released last month pointed to a surplus of $684 million for the month.

The result came as total exports fell one per cent in to $64.3 billion in August.

Exports of energy products fell three per cent, as shipments of crude oil fell 4.1 per cent, mainly due to lower prices.

Total imports edged up 0.3 per cent in August to $65.4 billion as imports of motor vehicles and parts rose 2.4 per cent.

In volume terms, total exports edged up 0.1 per cent in August, while imports increased 0.4 per cent.

This report by The Canadian Press was first published Oct. 8, 2024.

The Canadian Press. All rights reserved.

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