Japan: Consumer confidence hits over three-year high in January

Consumer sentiment in Japan rose marginally from December’s 43.1 to 43.2 in January, which marked the highest reading since September 2013. The consumer confidence index measures consumers’ expectations for the next six months on a scale of 0–100, where 100 indicates that all respondents see their living standards improving.

January’s reading reflected an uneven improvement as only one of the main sub-components of the index gained ground from the previous month’s result. Households’ perceptions of their job prospects improved to a four-month high, while consumers’ assessments of their income growth fell slightly. Consumers’ views on their overall livelihood and their willingness to buy durable goods remained unchanged from December.

FocusEconomics Consensus Forecast panelists expect private consumption to rise 0.8% in 2017, which is unchanged from last month’s forecast. In 2018, the panel also sees private consumption growing 0.8%.