Japan: Consumer confidence drops for first time since April
December 12, 2011
In November, the seasonally adjusted consumer confidence index declined to 38.1 points from 38.6 points in October. 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 deterioration was broad-based, as most of the components recorded losses. In particular, consumers were more pessimistic on job conditions (-1.0 points), given the October rise in unemployment. The overall livelihood category (-0.7 points) and the income growth index (-0.4 points) also weakened compared to the previous month, although the willingness to buy durable goods (+0.1 points) rose for the third consecutive month. Meanwhile, the Cabinet Office downgraded its assessment on consumer confidence, saying that it is "roughly flat." It had previously stated that the recovery in consumer sentiment was becoming "moderate."