— Japan Feb Consumer Confidence Index 40.6 Vs Jan 41.1
— Japan Govt Leaves View: Consumer Confidence Nearly Flat

TOKYO (MNI) – Japan’s Consumer Confidence Survey index fell to 40.6
in February from 41.1 in January, posting the first fall in two months,
the Cabinet Office said Monday.

Consumer confidence snapped a sixth straight month of decline just
in January.

Consumers turned turning less confident about income growth and
overall economic well-being, the survey showed.

The Cabinet Office maintained its assessment based on the February
index, saying, “Consumer confidence has turned nearly flat.”

In the February data, three of four sub-indexes, including overall
economic well-being, income growth and willingness to buy durable goods
deteriorated from the previous survey.

The index showing sentiment on asset values, which is not included
in the overall consumer confidence index, fell to in 40.7 in February
from 41.1 in January, showing the first fall in three months.

Compared to a year earlier, the overall index rose 0.8 points,
posting the 22nd ?? straight y/y rise, following a +2.1 points in
January.

The latest survey was conducted on Feb. 15, covering 6,720
households, of which 5,042 responded.

The survey also showed that consumer inflation expectations
remained relatively stable, with a slight upward bias still in place.

The percentage of people forecasting higher prices in a year’s time
showed the third straight monthly rise, accounting for 59.5% of the
total, and up from 48.5% in January. This compared with the record low
of 29.2% marked in December 2009.

Meanwhile, the percentage of people expecting lower prices 12
months ahead fell to 7.2% in February from 11.1% in January, marking the
third straight monthly drop. It was still far below the record high of
31.9% hit in December 2009.

The record low for those expecting price drops was 2.4% marked in
July 2008, when crude oil prices hit all-time highs.

The annual inflation rate below 2% was forecast by 2x.x% of the
surveyed in the latest month vs. 26.4% in the previous month.

Inflation in a range of 2% to 5% was forecast by 22.2% of the total
in the latest month compared to 16.7% in the previous month.

Inflation at 5% or over was forecast by 9.2% of the total in the
latest month vs. 5.4% in the previous month.

Unchanged prices were projected by 26.3% in the latest month vs.
32.2% in the previous month.

Price drops of less than 2% were seen by 4.6% of the polled in the
latest month vs. 7.5% in the previous month.

Price drops in a range of 2% to 5% were forecast by 1.9% of those
surveyed in the latest month vs. 2.4% in the previous month.

The annual rate of price drops at 5% or over was foreseen by 0.7%
of the total in the latest month vs. 1.2% in the previous month.

tokyo@marketnews.com
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