Japan: Consumer confidence declines to two-year low in March
Latest reading: Consumer confidence came in at 34.1 in March, down from February’s 34.8. March’s decline was the fourth in a row and marked the weakest sentiment since March 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 a particularly large drop with regard to employment expectations, potentially reflecting the anticipated economic hit from U.S. tariffs.
Outlook: The downbeat reading, along with those for January and February, gels with our panelists’ expectation for private spending to stagnate in Q1 as rising inflation and interest rates eat away at households’ purchasing power.