What might delight Japanese consumers?

Bank of Japan's (BOJ) qualitative and quantitative easing (QQE) has buoyant exports, pushed Japanese Yen to lowest since 2008 gaining competitive advantage. Country's benchmark stock index has reached highest since its 90's peak. However when it comes to consumers' optimism and spending, Kuroda team is severely lagging.

• Latest data pointed out, consumers are less optimistic in July as the consumer confidence index, released by Cabinet office dropped to 40.3 in July, compared to 41.7 in June, lowest reading so far this year.
• A reading above 50 indicates optimism. Last time the index was above 50, was during early 2006.

Why consumers are not confident, in spite of massive easing -

• Japanese regular consumers have not benefitted much from rise in stock market.
• Big export companies have benefitted in Japan, while small domestic companies have seen input cost rise due to weaker Yen.
• Consumers have received price rise side of the coin of QQE or weak Yen. Foreign travel has become over expensive.
• With unemployment rate hovering close to 3%, there hasn't been much job gains over QQE.
• Wage growth continues to remain stagnant, while cost pressure has moved up due to sales tax hike and weaker Yen.

With unemployment rate hovering at 3.4%, only faster wage growth might boost consumer confidence.