Japan consumer sentiment deteriorates for 6th month

April 9, 2019

Tokyo--Consumer sentiment in Japan deteriorated for the sixth consecutive month in March, due to higher prices of daily goods such as dairy and beverage products amid slowing wage growth, government data showed Monday.

The seasonally adjusted consumer confidence index dropped 1.0 point from February to 40.5, hitting the lowest level since 40.2 in February 2016, the Cabinet Office said in a survey covering households with two or more members.

Worries about a possible drop in corporate earnings stemming from overseas economic slowdowns including in China also seem to have dampened consumer sentiment, according to the government agency.

The Cabinet Office kept its basic assessment unchanged from the previous month, saying that consumer sentiment is weakening.

All of the four component indicators deteriorated in March. The indicator for overall livelihood fell for the 10th straight month, with those for income growth, employment and willingness to buy durable goods also dropping.

The proportion of respondents who expect prices to be higher in a year increased 0.4 percentage point to 86.4 pct, ahead of the consumption tax increase from 8 pct to 10 pct slated for October. Jiji Press