Growth in nominal wages slowed more than expected in March while early trade figures for April showed export growth slowing, adding to the case for the Bank of Japan to proceed cautiously with interest-rate hikes as economic risks at home and abroad continue to mount.
Nominal cash earnings rose 2.1% from a year earlier, decelerating from a revised 2.7% pace in February and below a median economist forecast of 2.5%, the labor ministry reported Friday. Real wages continued to fall, dropping 2.1% to deepen the persistent decline in consumer purchasing power, though separate spending figures showed robust household spending in March.
Exports in the first 20 days of April rose at a slower pace of 2.3% from the same period a year earlier, the Finance Ministry reported Friday, a result that suggests some initial impact from the U.S. tariff campaign, but not a dramatic hit. The gain compares with a 4.0% rise for the whole of March. Growth in exports has averaged 6.1% over the year through March.
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