MNI BRIEF: Japan Consumer Confidence Drops, Govt Cuts View
MNI (TOKYO) - Japan's consumer confidence index posted its second straight drop in January, down 1.0 points to 35.2 from 36.2 in December, while the government lowered its assessment for the first downward revision since May, data released by the Cabinet Office on Wednesday showed.
All four components, overall economic well-being, the willingness to buy durable goods, income conditions and the labour market, worsened from December, increasing concern over the outlook for private consumption on the back of continued high prices. (See MNI POLICY: Weak Services Prices Risk BOJ's 2% Target)
The government said that consumer confidence is marking time, changed from its previous view was that the improvement of consumer sentiment is at a standstill.
The worsening of the three-month moving average (-0.4 vs. -0.2) and the drop for the second straight month are behind the downward revision of consumer sentiment.
The sub-index on asset prices, not included in calculating overall consumer confidence, stood at 43.3 in January, down from 43.4 in December.
The share of respondents projecting consumer price gains stood at 93.3, down from 93.7 in December. The share of respondents forecasting lower prices stood at 2.2% in January, up from 2.0% in December.
The share of respondents who expected the consumer price index to rise more than 5% a year ahead rose to 52.3% in January for the highest level since June 2023 when it stood at 53.4% from 48.4% in December.