Japan data, overall household spending was higher than expected and notably higher than in June

• July household spending +1.7% m/m (expected +1.3%, prior -5.2%)

• July household spending +1.4% y/y (expected +2.3%, prior +1.3%)

Wages up solidly also:

• July overtime pay +3.3% y/y (prior +0.56%)

• July total cash earnings +4.1% y/y (expected 3.0%, prior +3.1%)

• July inflation-adjusted real wages +0.5% y/y

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Real wages (adjusted for inflation) rose for the first time in seven months in July

• helped by hefty summer bonuses and steady growth in base pay
• 7.9% jump in special payments
• 2.5% rise in regular pay

Overtime pay strongest since late 2022

Total cash earnings + 4.1%, the fastest in seven months

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