Wage slump raises fear of weak output

14 August 2015 By Andy Mukherjee

The Breakingviews Abenomics index fell to its lowest level in three months in June, stoking concerns that GDP may have shrunk in the second quarter. Delayed summer bonuses may have temporarily squeezed pay, while stalling inflation and sagging consumption suggest a grim outlook.

Click on the image to run the numbers

Context News

The Breakingviews Abenomics index fell to 98.72 in July, from a revised 98.86 in the previous month.

Among the 10 indicators that make up the composite, wages, consumption and stock and bond prices fell, the current account surplus narrowed, and inflation stalled.

However, new housing starts, manufacturing output and bank lending increased, and inflation expectations firmed up slightly.

The Cabinet Office will release second-quarter GDP data on the morning of Aug. 17. The data will probably show that economy shrank by an annualized 1.9 percent from the previous three months, compared with a 3.9 percent expansion in the first quarter, according to a Reuters poll.

Email a friend

Please complete the form below.

Required fields *