Japan: Consumer confidence continues to worsen
August 9, 2012
In July, the seasonally adjusted consumer confidence index fell to 39.7 points, which is below the 40.4 points recorded in June. In addition, the decline slightly exceeded market expectations that had consumer sentiment dropping to 40.0 points and marked, in fact, the lowest reading since December 2011. The consumer confidence index measures consumer expectations over the next six months, with a value of 100 points indicating that all respondents see their living standards improving. The monthly drop was broad-based, but particularly reflected a steep fall in job conditions and, to a lesser extent, in the overall livelihood sub-category. Moreover, the income growth and the willingness to buy durable goods recorded softer declines. Owning to the deterioration observed in recent months, the Cabinet Office downgraded its assessment, saying that consumer sentiment is weakening.