Drop in bonuses to put pressure on spending

Staying cautious: A banner of the Go To travel campaign displayed in front of a shop near the Sensoji Temple, a place for sightseeing in Tokyo. — AFP

TOKYO: Japanese companies have pared back year-end bonuses for employees by the most since the global financial crisis, putting additional pressure on consumer spending amid signs of a slowing economic recovery.

Individual bonuses for employees fell by 9% to 865,621 yen (US$8,368), according to a weighted average of special payments by 164 large corporations tallied by major business lobby Keidanren. That’s the steepest drop since 2009, when winter bonuses slumped 15%.