— Japan Nov SA Consumer Confidence Index 38.1 Vs Oct 38.6
— Japan Govt Cuts View: Consumer Confidence Nearly Flat

TOKYO (MNI) – Japan’s consumer confidence fell for the first time
in seven months in November as the global economic slowdown and the
strong yen clouded prospects for job creation and income growth, data
released by the Cabinet Office showed on Monday.

The closely watched index stood at 38.1 in November, down from 38.6
in October, when it was unchanged. Confidence had been gradually
recovering since April, when it slumped to 33.1, the lowest since April
2009, in the aftermath of the March 11 earthquake disaster.

The Cabinet Office downgraded its assessment based on the November
index, saying “consumer confidence is nearly flat.”

Last month, the Cabinet Office said that “the pace of recovery in
consumer confidence is moderating.”

In November, three out of the four sub-indexes — on overall
economic well-being, labor conditions and income growth — deteriorated
from the previous month, while the subindex for the timing of
buying durable goods rose slightly.

The latest survey was conducted on Nov. 15, covering 6,720
households, of which 5,033 responded.

The survey showed the labor conditions sub-index fell 1.0 point to
34.3 in November, the first drop in three months, while the sub-index on
income growth dipped 0.4 point to 38.7 and that on general well-being
fell 0.7 point to 39.1, both for the second straight fall.

The latest survey also indicated a setback in consumer inflation
expectations.

The percentage of people forecasting higher prices in a year’s time
slumped to 65.0% of the total on an unadjusted basis in November after
rising to 69.6% in the previous month.

Meanwhile, the percentage of people expecting lower prices 12
months ahead stood at 8.1% last month, up from 6.9% in October.

An annual inflation rate below 2% was forecast by 22.2% of those
surveyed in the latest month, down from 24.1% in October.

Inflation in a range of 2% to 5% was forecast by 28.5% of the total
in the latest month versus 30.2% in the previous month.

Inflation at 5% or over was forecast by 14.3% of the total in the
latest month vs. 15.3% in the previous month.

Price drops of less than 2% were seen by 4.6% of the polled in the
latest month vs. 3.7% in the previous month.

Price drops in a range of 2% to 5% were forecast by 2.4% of those
surveyed in the latest month vs. 2.1% in the previous month.

The annual rate of price drops at 5% or over was foreseen by 1.1%
of the total in the latest month, unchanged from the previous month.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4835 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$,MT$$$$]