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| Version 0 | Version 1 |
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| Fresh wobble for Japan's economy | Fresh wobble for Japan's economy |
| (30 minutes later) | |
| Fears over the strength of Japan's economy have risen after unemployment rose from 4.1% to 4.2% in September. | Fears over the strength of Japan's economy have risen after unemployment rose from 4.1% to 4.2% in September. |
| At the same time, other data showed average monthly household spending down by 6% in September compared with a year ago, the biggest fall in five years. | At the same time, other data showed average monthly household spending down by 6% in September compared with a year ago, the biggest fall in five years. |
| The reports come a day after news that industrial output fell 0.7% last month. | The reports come a day after news that industrial output fell 0.7% last month. |
| Meanwhile, the Bank of Japan left its key interest rate at 0.25% after its latest meeting. The Bank ended its zero interest rate policy in July. | Meanwhile, the Bank of Japan left its key interest rate at 0.25% after its latest meeting. The Bank ended its zero interest rate policy in July. |
| The Bank of Japan said on Tuesday it would gradually adjust monetary policy based on economic and price conditions. | The Bank of Japan said on Tuesday it would gradually adjust monetary policy based on economic and price conditions. |
| Analysts believe this is further indication it may raise interest rates early next year. | Analysts believe this is further indication it may raise interest rates early next year. |
| Pay levels | Pay levels |
| Japan's economy had seen a gradual revival earlier this year after a decade in the deflation doldrums. | Japan's economy had seen a gradual revival earlier this year after a decade in the deflation doldrums. |
| Accelerating growth, falling unemployment, and a strong economic performance had pushed Japan out of a deflationary spiral, and created the confidence to finally raise interest rates. | Accelerating growth, falling unemployment, and a strong economic performance had pushed Japan out of a deflationary spiral, and created the confidence to finally raise interest rates. |
| While the rate of unemployment rose in September from the month before, the figures also showed that the total number of unemployed fell by 50,000 from a year earlier to 2.8 million. | While the rate of unemployment rose in September from the month before, the figures also showed that the total number of unemployed fell by 50,000 from a year earlier to 2.8 million. |
| However, analysts said the recent economic figures meant that any further rate rises were likely to be postponed until the start of 2007. | |
| NLI Research Institute senior economist Taro Saito said the sustained fall in household spending was due to the unwillingness of Japanese firms to increase pay levels. | NLI Research Institute senior economist Taro Saito said the sustained fall in household spending was due to the unwillingness of Japanese firms to increase pay levels. |
| He added: "The Bank of Japan may find it more difficult now than before to hike interest rates before the end of this year." | He added: "The Bank of Japan may find it more difficult now than before to hike interest rates before the end of this year." |