Japan Consumer Morale Highest in 7 Months

Japan’s consumer confidence index increased to 34.9 in August 2025, up from 33.7 in the previous month. This marked the highest reading since January, with all major components of the index showing gains. Consumers’ assessment of their overall livelihood rose to 32.7 from 31.4 the previous month, signaling a more optimistic view of day-to-day living conditions. Expectations for income growth also improved, edging up to 39.4 from 38.5, while the employment outlook strengthened to 39.3 from 37.6, indicating greater confidence in job security and opportunities. Meanwhile, households’ willingness to purchase durable goods, an indicator of spending intentions, inched higher to 28 from 27.4, suggesting a cautious but positive sentiment toward larger, long-term purchases.