Japan Consumer Confidence Falls For First Time In Six Months

 @gmorcroftg.morcroft@ibtimes.com on July 10 2013 7:31 AM

Consumer confidence in Japan fell for the first time in six months in June, reflecting the bite of weakening wage growth and higher prices.

The latest government survey reported that household sentiment fell to 44.3 in June, a drop of 1.4 points from May's level. Household sentiment includes consumers' attitudes toward livelihood, income, jobs and willingness to buy durable goods. All four components of the survey weakened in June, the government said. A number below 50 indicates pessimistic expectations.

As the administration of Prime Minister Shinzo Abe tries to reignite the Japanese economy by generating inflation, the report showed that consumers, not surprisingly, are strengthening their expectations for rising prices.

The survey showed that 83.9 percent of respondents expect prices in Japan to be higher in a year. That's up just shy of 1 point from May's data. Sentiment about income growth fell 0.6 point in June from May, that metric's first drop in six months. 

 

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