Wages dropped in June for the first time this year, indicating slower consumer spending coupled with falling exports may bring on a recession.
Monthly wages, including overtime and bonuses, decreased 0.6 percent from a year earlier to ¥463,013, the labor ministry said Thursday. Bonuses fell 1.5 percent.
Falling wages may further depress consumer confidence already at its lowest level in more than 26 years, at a time when higher costs for food and gasoline have people reluctant to spend. Economists say the economy probably contracted last quarter after reports in the past week showed that exports, production and household spending declined.
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