Global| Jul 23 2003Japanese Consumer Sentiment Improves
Summary
Consumer sentiment in Japan recovered somewhat in the second quarter, rising 1.2 points to 37.3, the first increase in a year. Better employment conditions made the largest contribution, as that survey component advanced 2.3 points [...]
Consumer sentiment in Japan recovered somewhat in the second quarter, rising 1.2 points to 37.3, the first increase in a year. Better employment conditions made the largest contribution, as that survey component advanced 2.3 points from a first quarter low. People’s sense of their overall standard of living gained 1.0 point, perhaps reflecting the continuing improvement in the Japanese stock market. The Nikkei 225 stock price index stood at just 7608 on April 28 but by the time the sentiment survey was taken as of June 15, it had rebounded some 18% to 8981.[In subsequent weeks, these key stocks have added another 635 points.]. Despite the latest quarter’s improvement in survey participants’ feelings about their well-being, they maintain a general malaise about economic prospects. The consumer confidence index is at a very low level. People are still worried about income growth and their expectations about leisure pursuits have eroded consistently. However, there is better news elsewhere in Japan: GDP has risen for five quarters and the widely watched TANKAN survey of business prospects indicates less concern among business executives. Along with the better stock market, these improvements, taken together, show at least some stabilization in the Japanese economy.
| Japan: Consumer Behavior Survey | Q2 2003 | Q1 2003 | Q4 2002 | 2002 | 2001 | 2000 |
|---|---|---|---|---|---|---|
| Consumer Sentiment Index | 37.3 | 36.1 | 38.1 | 38.8 | 38.7 | 43.0 |
| Job Situation | 27.3 | 25.0 | 27.1 | 27.7 | 25.2 | 38.0 |
| Standard of Living | 37.7 | 36.7 | 38.2 | 39.0 | 39.4 | 43.6 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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