Report in the Wall Street Journal on the BOJ’s quarterly survey, released Thursday:
- more than 2,000 people surveyed
- One-fifth said they felt Japan’s economy worsened in the three months to December compared to a year earlier (up from 20.6% in the previous September survey)
- Almost 30% of said they expected the economy to worsen in 2014 (25.8% in the previous survey)
- 37.8% said they expect incomes to decrease over the coming year (up from 36.0% in previously)
- 8.1% expect a rise in incomes (8.3% previously)
These results are not encouraging as a sign of the expecting an end to deflation
- On the positive side, though:
- GDP is growing at almost 3% annually
- Exports have begun to recover
- Inflation hit a five-year high in November
Says the Journal:
The latest BOJ survey’s negativity might reflect consumers’ uncertainty over a planned 3% rise to the nation’s sales tax in April. The BOJ estimates the hike will raise overall prices by 2.0%.
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While wage gains haven’t started yet, no wonder Japanese people are wary.
