Japan's seasonally adjusted consumer confidence index for households of two or more people rose 0.6 points from July to 35.5 in August 2026, exceeding the 35.0 forecast and reaching its highest level since February. The fourth consecutive monthly improvement left sentiment below the 50-point optimism threshold and below pre-pandemic levels. The Cabinet Office maintained its assessment that signs of a pickup are emerging. Assessments of overall livelihoods and the timing of durable-goods purchases improved, while expectations for income growth and employment conditions weakened. The share of respondents expecting prices to rise over the next year fell to 89.0% from 92.8% in July, with a Cabinet Office official pointing to rice prices as a possible factor. The survey will be watched by the Bank of Japan as it assesses household demand, pricing behavior and wage negotiations, although the government said a firm recovery trend has not yet been established.