Japan: Consumer confidence worsens in June
July 10, 2012
In June, the seasonally adjusted consumer confidence index fell to 40.4 points, undershooting market expectations that had consumer sentiment remaining unchanged at May's 40.7 points. 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 mainly reflected a steep fall in job conditions and, to a lesser than extent, in income growth. On the other hand, the overall livelihood sub-component was unchanged from the previous month's result, while the willingness to buy durable goods improved to a 19-month high. Owning to the deterioration observed in June, the Cabinet Office downgraded its assessment, saying that consumer sentiment turned largely flat.