Japan's low unemployment rate not yet fuelled a stronger consumer sector

Low unemployment in Japan has not yet fuelled a stronger consumer sector. Household spending in May likely continued to contract y/y on lower-than-expected wage growth and consumers still adapting slowly to inflation.

"The unemployment rate is expected to have stabilised at 3.3% in May, having hit a historical low in April", says Standard Chartered.

Weaker inflation momentum in the coming months may lift purchasing power slightly, but more substantial and continued pay hikes are needed to revive private spending