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While consumer sentiment might be on a downward trend here in the United States, it hit a five-year high in Japan last month.
Consumers haven’t been buying enough to keep Japan’s economy booming, however.
A decline in exports – thanks to weak demand in Europe and the slowdown in China – have pushed growth down to 1.4%, just below the United States.
As Chief Economist at Mirae Asset Management, Joy Yang, says, “It exports, not only to China, but [to] a large portion of Europe and the U.S. So we think Japan’s slowdown is not just explained by the slowdown of China but rather the whole slowdown of the whole global economy.”
And according to Reuters, consumer sentiment might be the only thing that can keep Japan’s growth from falling even more: “As earthquake reconstruction spending starts to fade, Japan’s own consumers need to go on a fresh spending spree to keep the economy moving.”