In this paper, we present data on recent trends in private consumption and in possible
determinants of private consumption (such as GDP, household incomes, household
saving rates, household wealth, and employment conditions) in the group of seven (G7)
countries and find that there has been significant variability among the G7 countries not
only in their private consumption growth rates but also in the determinants of private
consumption growth during the 2002–2007 period. With respect to Japan, we find that
private consumption has been relatively stagnant during the 2002–2007 period and that
the stagnation of private consumption has been due to the stagnation of household
income and of household wealth and the relative stability of the household saving rate.