Japan: Consumer sentiment halts rally in April
May 15, 2013
The seasonally adjusted consumer confidence index deteriorated slightly in April, falling to 44.5 points from 44.8 points in March, which had market the highest level since May 2007. Moreover, the print fell short of the 45.5 points expected by market analysts. That said, consumer confidence stood 4.7 point above the level seen in the same month last year. The consumer confidence index measures consumer expectations over the next six months, with a value of 100 points indicating that all respondents see their living standards improving.
The deterioration was mainly due to lower readings in the overall livelihood category as well as in consumers' willingness to buy durable goods. Moreover, income growth moderated slightly. On the other hand, job conditions improved over the previous month.
FocusEconomics Consensus Forecast panellists anticipate private consumption to increase 0.9% in 2013, which is up 0.1 percentage points from last month's forecast. In 2014, the panel sees private consumption growing 0.6%.