Weakness in Personal Consumption

「During the interim consolidated accounting period, the domestic consumption environment showed a gradual recovery in personal income, with the wage increase rate at 5.01% and disposable income on an upward trend. At the same time, consumer sentiment remained cautious because of higher food and import prices and concerns about further price pass-through. Apparel sales continued to face difficult conditions amid intense price competition and a firmly entrenched inclination to economise.」

「Intermittent price increases for essential goods placed a burden on household finances. As a result, consumers remained firmly inclined to economise, and the stronger tendency to scrutinise value and price closely meant that the difficult environment for apparel sales continued.」

「Consumers' preference for saving on daily necessities remains deeply rooted, and proposals for products that offer a balanced combination of value and price are expected to become even more important.」

「During the interim consolidated accounting period, wage increases rose in Japan, but labour and logistics costs also increased, while food and daily necessities continued to become more expensive as raw material prices rose. As a result, real wages continued to decline, and consumers remained strongly inclined to economise, so consumption activity, including apparel, remained challenging.」

「The prolonged depreciation of the yen beyond expectations and price increases for daily necessities and food products caused by adverse weather put pressure on household finances. As a result, consumers remained strongly inclined to economise, and the difficult consumption environment for apparel sales continued.」

「During the interim consolidated accounting period, consumer spending in July turned positive for the first time in 3 months, but consumers continued to economise amid higher prices. Real wages in July increased year on year for the second consecutive month. This was due to higher bonuses, while regular wages fell short of the rate of price increases. In addition, subsidies for electricity and gas bills were temporarily discontinued, and the consumer price index excluding fresh food rose 2.7% in July. Although the resumption of the subsidies is expected to curb price increases from September onward, consumer trends remain uncertain.」

「During the cumulative first quarter of the fiscal year, consumer spending was negative for 13 consecutive months through March before turning positive in April, but consumers remained strongly inclined to economise. Although the average wage increase at major companies rose 5.58%, the consumer price index excluding fresh food continued to increase by at least 2.0% for the 25th consecutive month, so real wages also remained negative year on year.」

「Although consumer sentiment improved for the second consecutive month in November as income rose with wage increases and the employment environment improved as the unemployment rate declined, consumers are expected to remain inclined to economise, against a backdrop of inflation concerns, which will continue to affect personal consumption.」

「At the same time, real wages in July were negative year on year for the 16th consecutive month because of higher prices, while consumer sentiment worsened in August for the first time in 9 months, increasing concerns about a deterioration in personal consumption amid inflation concerns.」

「During the cumulative first quarter of the fiscal year, society returned to normal after COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law in early May and infection-control measures became a matter of individual judgement. Domestic travel during Golden Week also recovered to around pre-pandemic levels. At the same time, higher prices for food, accommodation and dining services drove the consumer price index up 3.4% year on year in April, a high rate of increase, raising concerns that households would become more inclined to economise amid inflation concerns.」

「In the second half, the government’s travel support measures increased foot traffic across the country and consumer spending rose. However, real wages were negative year on year because of higher prices, and the number of COVID-19 infections rose again, so the difficult consumption environment for apparel sales continued.」

「The number of new COVID-19 infections declined from September, and the government’s travel support measures began in October, increasing foot traffic nationwide. Consumer spending in October exceeded the previous year for the fifth consecutive month. At the same time, real wages in October were negative year on year for the seventh consecutive month because of higher electricity bills and food prices, while new COVID-19 infections began increasing again from November, and the difficult consumption environment for apparel sales has continued.」

「The summer holiday period was free of activity restrictions for the first time in 3 years, and demand for travel and visits to family returned. As foot traffic increased nationwide, consumer spending in July exceeded the previous year for the second consecutive month. At the same time, real wages in July were negative year on year for the fourth consecutive month because of higher electricity bills and food prices, and the number of new COVID-19 infections remained elevated nationwide as the seventh wave continued, so the difficult consumption environment for apparel sales has continued.」

「In the first half, declarations of a state of emergency were issued continuously because of COVID-19, and people continued to refrain from going out and travelling. The Tokyo Olympics also failed to stimulate consumption, and personal consumption remained sluggish. In the second half, consumer sentiment recovered from October through the year-end and New Year period as infections declined, but infections surged from the beginning of the new year as the Omicron variant spread, and the issuance of priority preventive measures against the spread of disease again created difficult conditions for apparel sales.」

「From October onward, the number of people out and about in urban areas increased as infections declined, and customer traffic at service businesses such as restaurants and accommodation facilities gradually began to recover. Apparel sales also showed signs of recovery, but it is difficult to say that they had returned to the level of the year before last,」

「Real GDP for the April–June quarter grew 1.9% on an annualised basis, and although personal consumption increased only slightly, it turned positive for the first time in two quarters. Signs of recovery also emerged in business sentiment, particularly in manufacturing.」

「During the cumulative first quarter of the fiscal year, the declaration of a state of emergency twice in response to COVID-19 again restricted the movement of people and economic activity. Large facilities were forced to close or reduce their operating hours, causing personal consumption to fall substantially, particularly in services such as dining out and accommodation, while apparel sales also remained challenging.」

「During the fiscal year, the domestic consumption environment was extremely challenging for apparel sales. Personal consumption declined as people refrained from going out and inbound demand disappeared, while events such as summer festivals and occasions such as graduation ceremonies were scaled back or cancelled, and large commercial facilities were forced to reduce their operating hours. The government’s consumption stimulus measures had a certain effect, however.」

「The November consumer sentiment survey showed some signs of a recovery in consumer sentiment, but the unemployment rate remained elevated and winter bonuses paid by listed companies fell sharply year on year,」

「Although measures to stimulate consumption through the Go To campaign were introduced in July, a stronger mood of refraining from returning to one’s hometown and travelling, the cancellation of festivals and beach openings, and the shortening of summer holidays at elementary, junior high and high schools resulted in demand disappearing for some seasonal products, including swimwear and yukata.」

「The impact of the novel coronavirus outbreak caused personal consumption in Japan to decline as people refrained from going out, inbound demand to disappear, and economic opportunities to be lost because of the postponement of the Tokyo Olympics. Although the government introduced emergency support measures, including various benefit payments, consumer sentiment is expected to remain depressed for the time being as the economy deteriorates.」

「Following the consumption tax increase, real GDP fell quarter on quarter in the October–December quarter, while consumer spending was negative year on year for four consecutive months from October through January, indicating a marked deterioration in consumer sentiment.」

「During the cumulative third quarter of the fiscal year, the domestic consumption environment was affected not only by the decline following the pull-forward demand ahead of the consumption tax increase, but also by weaker consumer sentiment caused by adverse weather and natural disasters. As a result, October retail sales fell sharply, down 7.1% year on year.」

「Real wages in July fell 0.9% year on year, increasing uncertainty about the economic outlook following the consumption tax increase.」

「In April, a succession of price increases for everyday food products raised concerns about the impact on household finances, along with the consumption tax increase scheduled for October.」

「In the consumer environment, the shift from the consumption of goods to the consumption of experiences is progressing, and general consumers' attitudes toward owning goods are changing. Unlike the previously observed focus on protecting household finances and saving, the diversification of consumer spending patterns and more rigorous selection of necessary and unnecessary purchases are acting as brakes on personal consumption.」

「Personal consumption showed signs of recovery against this backdrop, but consumer sentiment temporarily weakened due to disasters including record-breaking heat and torrential rain.」

「Personal consumption showed signs of recovery against this backdrop, but consumer sentiment temporarily weakened due to disasters including record-breaking heat and torrential rain.」

「Consumer spending turned positive in November, which is expected to lead to an increase in personal consumption.」

「The employment environment improved substantially, with the effective job-openings-to-applicants ratio in October reaching its highest level in 43 years and 9 months, and labour shortages becoming a serious problem. However, consumer spending remained sluggish, and personal consumption continued to be weak.」

「Consumer spending increased in June for the first time in 16 months, but declined again in July, and personal consumption remained sluggish.」

「Personal consumption remained sluggish, with consumer spending declining for the 14th consecutive month in April.」

「Signs of weakness in personal consumption continue to be seen, with household consumption spending declining for the 11th consecutive month in January.」

「Personal consumption continues to lack strength, with household consumption spending declining for the eighth consecutive month in October.」

「Personal consumption continues to lack strength, with consumer spending declining for the second consecutive month in April.」