MNI BRIEF: Japan Oct Consumer Confidence Index Drops
MNI (TOKYO) - Japan's consumer confidence index in October printed at 36.2, down from 36.9, its first drop in five months as all four components fell, undermining the Bank of Japan's view which expected private consumption to remain firm as income conditions and consumer sentiment improved, data released by the Cabinet Office on Wednesday showed.
The BOJ in September upgraded its assessment on private consumption, noting the metric had been on a moderate increasing trend, a departure from its previous assessment that held spending was resilient. (See MNI BOJ WATCH: Ueda Says BOJ Has Time To Watch Price Moves)
The indexes linked to overall economic well-being, income conditions, the labour market and the willingness to buy durable goods all fell.
The sub-index on asset prices, not included in calculating overall consumer confidence, stood at 42.9 in October, up from 40.2 in September, thanks to the performance of the Nikkei 225.
The share of respondents projecting consumer price gains rose to 93.2% in October from 93.1, while the share of respondents forecasting lower prices stood at 1.9%, down from 2.0% in September.
The share of respondents that expect the consumer price index to rise more than 5% a year ahead rose to 47.9% in October from 46.6% in September following sharp price rises.
The government, however, left its assessment unchanged, noting consumer confidence is marking time.