Japan Consumer Confidence Drops for August

Consumer morale in Japan dropped for August just after rising to its strongest in 17 months during July as the resurgence of COVID-19 cases prompted new state of emergency measures.

Japan’s Cabinet Office reported that the Consumer Confidence Index in August was 36.7, down by 0.8 points from July.

The August reading was the weakest since May as all sub-indices went down: overall livelihood went down by 0.9, income growth by 0.3, and employment by 1.9 from the previous month.

Consumers’ willingness to buy durable goods dropped only slightly by 0.1 points from July.

Japan expanded its state of emergency on Aug. 27 after Delta variant pushed a new wave of infections and overwhelmed hospitals.

July saw Japan’s strongest consumer morale since February 2020 at 37.5, inching up by 1 point from the previous month after a short period of eased restrictions allowed households to become more upbeat.

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