Japan: Consumer sentiment declines again in July, reaching six-month low
August 9, 2013
Consumer sentiment dropped from 44.3 points in June to 43.6 points in July. This is the second consecutive month of deterioration and marks the lowest level of consumer confidence in six months. The decline contrasted market expectations, which saw the index rebounding to 45.0 points. The consumer confidence index measures consumers' expectations over the next six months on a scale of 0-100, with 100 points indicating that all respondents see their living standards improving.
Consumers' increasingly pessimistic views were broad-based; job conditions was the only category that improved slightly over the previous month. Consumers' views on their overall livelihood and their willingness to buy durable goods decreased the most.
FocusEconomics Consensus Forecast panellists anticipate private consumption to 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%.