Japan corporate bankruptcies hit 1,028 in July, highest in 13 years, as rising labor costs and inflation weigh
Macro
Corporate bankruptcies in Japan reached 1,028 in July, up 6.9 percent from a year earlier and the highest for the month since 2013, Tokyo Shoko Research said on the 10th. Rising labor costs and inflation driven by a weak yen and higher crude oil prices are squeezing corporate earnings. Bankruptcies attributed to labor shortages hit a monthly record of 63, with those linked to rising labor costs surging to 36, 2.1 times the year-earlier figure. Inflation-related bankruptcies rose to 93, exceeding the prior-year level for the eighth straight month. By industry, construction bankruptcies rose 9.8 percent to 200, retail rose 24.1 percent to 139, and information and communications jumped 62.5 percent to 52. The research firm expects bankruptcies to likely accelerate as funding needs pick up amid persistent labor cost, inflation, and interest rate pressures.
