Japan Average Wage Increase: Ideas Later.

Japan's average wages up over 5% for 3rd straight year amid rising prices

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Article:

TOKYO (Kyodo) -- Japanese companies agreed to raise wages by an average 5.01 percent in this year's spring wage negotiations, marking the third consecutive year of pay increases of over 5 percent, the country's largest labor union said Friday.

The Japanese Trade Union Confederation, also known as Rengo, said its final tally of wage negotiation results from over 5,300 member unions showed the average monthly pay hike stood at 16,400 yen ($102).

Consumer spending remains sluggish in Japan, with wage growth having lagged behind price increases until recently. Japan's real wages rose for the fourth straight month in April. But a surge in oil and raw material costs stemming from the Middle East conflict threatens to accelerate inflation.

The pace of wage growth slowed from the previous year's average increase of 5.25 percent.

"We accept the result as a step forward toward a society where pay raises are normal," said Akira Nidaira, an assistant general secretary at Rengo, at a press conference, adding that smaller firms did what they could.

Wages at small- and medium-sized companies increased by an average of 4.69 percent, or 12,866 yen, even though they still lagged behind the pace of increases at larger firms.

The figures are based on wage negotiation results from 5,368 unions as of Wednesday.

Article source:  https://mainichi.jp/english/articles/20260704/p2g/00m/0bu/008000c

Rice Sales in Japan. Ideas Later.

Sales of rice from 2025 harvest to Japan wholesalers hit record low

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TOKYO (Kyodo) -- Agricultural cooperatives and other groups in Japan that collect rice from farmers sold a record-low 1.32 million tons of the grain from the 2025 harvest to wholesalers as of the end of May, down about 17 percent from a year earlier, the farm ministry said Tuesday.

The decline in rice sales through the conventional distribution channel, which accounted for just under half of the 2025 harvest collected, comes as demand has shifted to cheaper government-released stockpiled rice as well as imported rice.

Private-sector rice inventories rose about 51 percent to 2.23 million tons as of the end of May, reaching a level on par with the record high recorded in 2014, according to the Ministry of Agriculture, Forestry and Fisheries.

Retail rice prices have been declining since the government began releasing stockpiled rice, including through direct contracts with retailers, last year. Prices could fall further if wholesalers seek to reduce inventories by discounting rice.

According to the ministry, the average retail price of a 5-kilogram bag of rice at around 1,000 supermarkets nationwide fell to 3,590 yen ($22) in the week ending June 21 after peaking at 4,416 yen in the week from Dec. 29, 2025, to Jan. 4.

In March, the ministry projected that private-sector rice inventories would reach a record high of 2.34 million tons by the end of June. While the latest figure does not include rice held by small wholesalers or farmers, it still far exceeds the appropriate inventory level of 1.8 million to 2.0 million tons.

Article source:  https://mainichi.jp/english/articles/20260701/p2g/00m/0bu/006000c

AI Demand and Big Companies in Japan. Ideas Later.

AI demand pushes Japan big manufacturers' business confidence to 8-yr high

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TOKYO (Kyodo) -- Business confidence among major Japanese manufacturers in June improved to the highest level in eight years, as robust demand related to chips and artificial intelligence offset risks posed by the Middle East conflict, the Bank of Japan's Tankan survey showed Wednesday.

The sentiment index measuring confidence among companies such as those in the auto and electronics sectors rose to 22 from 17 in March for the fifth straight quarterly increase, beating the average market forecast of 16 in a Kyodo News tally.

But the index is projected to decline to 17 in September. The BOJ survey of 9,141 companies conducted between May 28 and Tuesday, received responses from around 70 percent of the firms by June 11, before the preliminary agreement between the United States and Iran to end their war.

It will "take time" for businesses to adjust their plans even though a deal has been reached, a BOJ official said at a briefing.

A wide range of industries remain concerned over the negative impact of the war, which sent crude oil prices sharply higher and disrupted energy supplies, the BOJ official said. The United States and Israel launched the war on Feb. 28.

Businesses in general-purpose, production, business-oriented and electrical machinery sectors as well as those in nonferrous metals, iron and steel, chemicals and textiles said they have seen strong orders for chip-making devices and related materials, the official said.

More companies are passing on increased material costs to retail prices to prevent profits from being squeezed, while some sectors benefited from orders that were brought forward to secure supplies, the official said.

Some companies voiced concerns that the Middle East situation may leave procurement disrupted, which could lead to further rises in materials costs and reduction in capital spending, he said.

Sentiment among chemical makers improved to 20 from 14, while confidence among manufacturers of production machinery rose by 10 points to 36. The petroleum and coal products sector saw a deterioration to 9 from 18 and motor vehicles also shed 1 point to 12.

The index for large nonmanufacturers, including the service sector, stood at 37, up from 36 in the previous survey in March, marking the first improvement in five quarters.

The accommodation, eating and drinking services sector benefitted from growth in inbound visitors, with sentiment rising to 46 from 34.

Construction and real estate sectors weakened due to a rise in material costs stemming from the Middle East situation, the official said.

All enterprises polled, also including medium-sized and small enterprises, raised their inflation outlooks by 0.1 percentage point for one, three and five years ahead, to 2.7, 2.6 and 2.6 percent, respectively, the data showed.

The Tankan index represents the percentage of companies reporting favorable conditions minus the percentage reporting unfavorable ones.

Article source:   https://mainichi.jp/english/articles/20260701/p2g/00m/0bu/016000c

Japan May Industrial Output: Updated July 4, 2026.

Japan industrial output in May rises 0.5% on month

Ideas

Japan is still a major industrial country even though its economy has transitioned, like most economies today into a services and technology economy.

As Japan is heavily focused on exports, its industrial base is still a major part of its economy and most likely will continue to play a major role in its economic growth.

Like many sectors in most economies, there are going to be ups and downs from month to month and even from quarter to quarter, but the key idea is always long term growth and not the ups and downs seen in some months or even quarter.

"Fluctuating indecisively is just the normal situation with most sectors and especially those days related to global trade and all of the negative situations that might affect exports.

A seasonally adjusted index score of 103.0 is still very good and shouldn't be seen as a negative if it decreased from 104 or even 105 recently. And even if was 102.0 before an increase to 103.0 is not that big of a change as these indexes are just a glimpse of what might really be happening and not the full story.

On a side note or other note, it should be noted, it has been suggested that most or many of the parts used by Boeing, to make their planes, comes from Japan as it seems Japan is a major producer of parts for most of the the Boeing aircraft used around the world.

When there is talk about the Middle East its always assumed, or seems to be, that only gas and oil come from the region, but there are many other products and commodities that are produced in that region and they too have been affected the situation and many countries are feeling the affects of the situation related to all of the commodities and products that have not been produced or shipped recently.

Again, not all sectors are going to be up at the same time and again not all are going to be down at the same time and the Japanese economy is very complicated and some parts are always going to be up and some are always going to be trending down.

Its important to look at the big picture and not the weekly, or monthly, or even quarterly index numbers but take a more long term look as see what is happening on a yearly basis.

As such next year, the Middle East situation might just feel like a bump in the road and nothing more and the Middle East situation calms down and the global economy gets back to some kind of normalcy.

As expected June should see an increase as it's just business as usual but in July there is the Obon or summer holiday period on Japan and most likely some or many companies might take holidays like they do in Europe and industrial production will decrease some for the month of July.

An index of industrial shipments in May at 101.6 is not bad as it's still above 100, but of course maybe investors would prefer it to be much higher and not that close to 100 the neutral area.

However inventories being at 95.4 might be a trend that needs to be watched but again it should be taken with a grain of salt as the yearly index is more important than the month or even the quarterly index reading.

Have a nice day!

Article source:  https://mainichi.jp/english/articles/20260630/p2g/00m/0bu/009000c

Japan May Jobless Rate. Updated June 30, 2026.

Japan's May jobless rate flat at 2.5% as fewer leave at business year start

Ideas:

Japan has one of the lowest unemployment rates among advanced nations but it must be remembered not everyone works for name-brand Japanese company has up to 70 percent of the workforce in Japan work for either small or mid-size companies.

There is also a sizable number of workers who are contract only workers meaning they don't get full benefits and of course probably don't get the same salaries as full-time workers do in Japan.

There is at the same time a supposed labor-shortage in Japan which means its good for those who are looking for work or want to change jobs as some companies are having a difficult time finding suitable workers.

There is always a question mark as to why some workers were let go in Japan, as for the most part, Japan doesn't have normal layoffs or firings like in the western countries so it sometimes is very ambiguous to what being let go means in Japan.

At the same time, 740,000 who left their jobs voluntarily is not ambiguous as because there is a supposed labor-shortage in Japan, meaning there might be a lot of jobs available, people quit their existing jobs hoping to find a new job very quickly.

There might be 117 jobs available for every 100 jobs but that doesn't mean all jobs are full-time with good benefits as it is estimated that up to 40 percent of workers in Japan are considered non-regular workers and are not the workers who get good salaries and benefits from Japanese name-brand companies.

With that said, some or many Japanese companies, after 2008 and the global financial crisis, started to transition to hiring a lot of non-regular workers to cut costs and the practice has continued to this day.

If up to 40 percent of the workforce potentially is non-regular workers that doesn't bode well for consumer spending in the Japanese economy as non-regular workers, for the most part, are going to be concerned about their disposable incomes.

An economy is very complex and every sector in an economy is not going to up up all the time as some will be up and some will be down and that's just the situation for a market economy these days.

Its very possible that even though Japan has a supposed labor-shortage, most of or many of the better jobs have now been taken and or its quite possible that companies and their profits margins are not maxed out, for now, and they can't higher any new workers at this time.

Have a nice day!

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Toyota May Global Sales: Ideas Later.

Toyota May global sales drop 7.2%, down for 4th month, on weak China demand

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NAGOYA (Kyodo) -- Toyota Motor Corp. said Monday its global sales in May dropped 7.2 percent from a year earlier to 834,279 units, marking the fourth straight month of decline, reflecting sluggish demand in China hit by higher gasoline prices amid the Middle East conflict.

Its exports from Japan to the Middle East plunged 65.9 percent to 7,323 vehicles in the reporting month, falling for the third consecutive month, likely due to logistics disruptions stemming from the regional conflict.

Global output fell 5.5 percent to 765,470 cars, posting its first decline in three months, according to the world's largest automaker by volume.

Toyota's overseas sales dropped 9.6 percent to 715,898 units, with sales in China sliding 31.7 percent to 102,299 vehicles as a severe market environment persisted, the company said.

Sales in the United States edged down 0.6 percent to 238,800 units, almost flat from the previous year despite continued robust demand for hybrid vehicles, while the Middle East saw a 38.6 percent drop in sales to 29,568 cars.

However, sales in Japan grew 11.1 percent to 118,381 units, with demand remaining strong, aided by solid sales of new models, including the RAV4 sport utility vehicle and the bZ4X electric vehicle. Sales in India also jumped 15.3 percent to 30,227 cars, helped by tax cuts on automobiles.

Toyota's overseas production fell 9.4 percent to 514,882 vehicles, the first year-on-year decline in three months, with output in North America and Europe decreasing due to fewer operating days. China saw a 23.0 percent drop in production to 98,536 vehicles.

Domestic output rose 3.7 percent to 250,588 units, marking its first increase in seven months, supported by the launch of new models.

Meanwhile, global sales by Japan's eight major carmakers, including Toyota, in May fell 2.6 percent from a year earlier to 1,966,434 vehicles.

Sales by Honda Motor Co. dropped 4.9 percent to 283,623 units due to weaker demand in China, while struggling Nissan Motor Co. saw a 10.3 percent decline in sales to 229,870 cars.

However, sales by Suzuki Motor Corp. climbed 23.2 percent to 307,918 units, driven by strong demand in India due to tax cuts and growth in emerging markets.

Global output by the eight automakers totaled 1,903,550 vehicles, down 3.7 percent, while domestic production edged down 0.9 percent to 598,817 cars.

Article source:  https://mainichi.jp/english/articles/20260629/p2g/00m/0bu/028000c

Japan May Duty-free Sales: Ideas Later.

Japan May duty-free sales up for 3rd month amid weaker yen.

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Article:

TOKYO (Kyodo) -- Duty-free sales at Japan's department stores in May rose 16.7 percent from a year earlier to around 49.66 billion yen ($300 million), up for the third straight month, helped by the yen's weakness and higher prices for luxury items, industry data revealed Thursday.

The number of duty-free shoppers dropped 6.3 percent to 503,000, decreasing for the seventh consecutive month. Excluding China, both sales and the number of paying customers jumped for those from Hong Kong, Taiwan, South Korea, Malaysia and Singapore, according to the Japan Department Stores Association.

However, the number of Chinese customers fell roughly 30 percent in the reporting month, amid a diplomatic rift between the two countries caused by Japanese Prime Minister Sanae Takaichi's controversial remarks on Taiwan.

Still, sales to Chinese visitors have been recovering, with the decline capped at around 5 percent, the association said.

Japan-China relations have been strained since Takaichi said in parliament last November that a Chinese attack on Taiwan could constitute a "survival-threatening situation" that could prompt a response by the Self-Defense Forces in support of the United States.

Excluding duty-free sales, domestic department store sales increased 7.4 percent in May, rising for the 10th consecutive month, aided by a more favorable calendar than the previous year and strong sales of high-end items such as jewelry and watches on the back of rising stock prices and a weaker yen.

An association official said, "People become more willing to spend as their asset holdings grow," adding that the psychological impact of higher stock prices is significant.

Overall sales at 172 stores operated by 68 companies climbed 8.3 percent from a year earlier to 468.39 billion yen, marking the fifth straight month of year-on-year growth, the association said.

Article source:  https://mainichi.jp/english/articles/20260625/p2g/00m/0bu/037000c