Hakuhodo Institute reports decline in Japan's consumer intention index

The Hakuhodo Institute of Life and Living has released its consumption intention index for September 2026, reporting a significant decline in consumer sentiment. The index fell to 45.7 points, a decrease of 3.4 points from the previous month and a 0.9 point drop compared to the previous year, marking the lowest value for September in the past five years.

Surveyed individuals cited several reasons for this downturn. Positive drivers, such as summer holidays and seasonal bonuses, decreased sharply. Conversely, negative sentiments rose, with respondents noting a desire to save money after high spending in previous months, a lack of specific items they wished to purchase, and a tendency to avoid unnecessary shopping.

While concerns regarding inflation, price hikes, and the weak yen remain high compared to the previous year, the primary driver for the September decline appears to be the post-holiday period combined with increased frugality. The percentage of people expressing a specific intent to buy certain goods or services remained relatively stable, showing only marginal decreases.