The BOJ’s consumer sentiment survey shows that present spending has increased with the diffusion index (increase vs decrease vs same) up to 25.1 from 18.1 in May. Forward looking, 1 year from now spending is expected to fall, -43.7 from -43.3 in May
Consumers see current economic conditions worse -10.0 from -6.4 but better a year from now -15.3 vs -16.5. Household condition are worse -39.8 vs -33.5
Income has fallen -30.0 vs -29.8 prior but there’s hope it will rise in a year -27.5 vs -29.4
Those ‘quite worried’ (31.5 vs 30.6) and ‘slightly worried’ (50.0 vs 49.9) about employment conditions increased while the ‘not particularly worried’ fell (18.5 vs 19.2)
1 year inflation expectations are 3.0%, 5 year 2.0% y/y
I don’t know how much the market holds to this data but it is good to get a feel for sentiment. It looks like the majority are seeing unfavourable conditions over the next year. The survey was conducted between 9th May and 5th June and 2275 were surveyed.
