Japan April Cash Earnings Beat Estimates, Household Spending Improves

Japan's April labour data released early Tuesday showed cash earnings beating expectations. Total cash earnings rose 3.5% year-on-year, above the 3.1% consensus and the prior month's revised 3.1%.

Real cash earnings also came in stronger at 1.9% year-on-year, beating the 1.7% estimate and the previous revised 1.4%. However, scheduled full-time pay missed forecasts, rising 2.6% versus the expected 3.0% and the prior 2.7%. Cash earnings for the same base (excluding bonuses and overtime) rose 3.1%, slightly above the 3.0% estimate and the prior 2.8%.

Household spending continued to contract but at a shallower pace than anticipated, falling 0.5% year-on-year compared to the expected 1.5% decline and the prior 2.9% drop.