The Cabinet Office of Japan stated last week that the country’s economy “is on the way to recovery at a moderate space”, raising the assessment for the first time in nine months in its monthly economic report.
The news of GDP growth during the March quarter – annualized real 4.1% from the previous quarter – also indicated slow but gradual improvement in Japan’s economic climate.
However, stagnate wage growth during the last Japanese financial year (JFY April 2011 to March 2012) may continue to undermine consumers’ confidence on the improving outlook.
The average monthly wage paid by companies with over 30 employees increased 0.1% year-on-year, while the average of total businesses (with five or more employees) declined 0.3%, according to data by the Ministry of Health, Labour and Welfare of Japan.
The Consumer Price Index for the JFY 2011 fell 0.1% year-on-year.
Possibly a reflection of the uncertain future, the proportion of the average Japanese family saving to the annual income during 2011 (calendar year) was a record high 272% (up 3% point from 2010 at 16.64 million yen).
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