Japan: Consumer sentiment declines again in August, reaching eight-month low
September 9, 2013
Consumer sentiment dropped slightly from 43.6 points in July to 43.0 points in August. This is the third consecutive month of deterioration and marks the lowest level of consumer confidence since December 2012. The decline contrasted market expectations, which saw the index edging up to 46.0 points. The consumer confidence index measures consumers' expectations over the next six months on a scale of 0-100, where 100 points indicates that all respondents see their living standards improving.
Consumers' views were more pessimistic across all survey categories. Households' views on their overall livelihood and employment prospects decreased the most over the previous month. Opinions regarding income growth and willingness to buy durable goods decreased slightly.
FocusEconomics Consensus Forecast panelists expect that private consumption will increase 1.6% in 2013, which is up 0.2 percentage points from last month's forecast. In 2014, the panel sees private consumption growing 0.6%.
Author: Carl Kelly, Economist