Japan real and nominal wage pay drops, to weigh over consumption

Basic pay for Japan's workers fell for the first time in more than a year in June due to a decline in summer bonus payments, and real wages dropped at the fastest pace in two years.

The labor ministry data released today showed nominal cash earnings fell an annual 0.4% in June, the first decline since May 2016. Real, or inflation-adjusted, wages fell an annual 0.8% in June, the biggest decline since June 2015. Bonus payments fell 1.5% in June from a year ago, the first decline since June.

The decline in the real wages could weigh over the consumer spending.