Japan: Consumer sentiment weakens for the fourth consecutive month
November 10, 2010
Consumer confidence continued to falter in October, auguring a weakening in private consumption in the months ahead, following on the resilient growth tallied in the third quarter. In October, the Cabinet Office's index of household sentiment dropped for the fourth month in a row, sliding from 41.2 points in September to 40.9 points. An index value below 50 indicates that pessimists outnumber optimists. The fall in consumer sentiment was mostly driven by a significant drop in the willingness to buy durable consumer goods, in particular cars and electronic products, which reflected the withdrawal of government stimulus measures aimed at boosting consumption. Nonetheless, expectations of income growth stabilised and consumer confidence regarding the labour market inched up.