Japan: Consumer confidence drops further to over two-year low in April
Latest reading: Consumer confidence came in at 31.2 in April, down from March’s 34.1. April’s decline was the fifth in a row and marked the weakest sentiment since February 2023. As a result, the index moved further below the 50-threshold separating pessimism from optimism among consumers.
Looking at subcomponents of the index, there was another notable deterioration with regard to employment expectations, potentially reflecting the expected economic hit from U.S. tariffs. Consumers’ willingness to buy durable goods also worsened sharply, likely a result of recently high inflation.
Outlook: The reading bodes poorly for private spending in Q2, which our panelists expect to broadly stagnate for the second quarter running.