12 July 2005, 10:01  Japan June consumer confidence index falls to 46.6 from 48.3 in May

Japan's consumer confidence index fell to 46.6 in June from 48.3 in May, the first drop in three months, the Cabinet Office said. The headline index and all four sub-indices fell in June, showing a majority of Japanese were more pessimistic about wages, employment conditions and their overall economic well-being. The consumer confidence index is based on replies to a survey asking about four aspects of consumer sentiment -- perception of general economic well-being, income growth, employment conditions and willingness to purchase durable goods. Respondents are asked if there has been improvement in those areas from three months earlier. Numbers above 50 mean that respondents reporting improvement outnumber those reporting deterioration. Numbers below 50 mean a majority believe conditions have worsened. The sub-index for general economic well-being fell to 45.2 in June from 47.0 in May, while the income growth sub-index declined to 43.3 from 46.5. The employment conditions sub-index fell to 48.3 in June from 49.6 in May. The willingness to buy durable goods sub-index slid to 49.7 from 50.0. The decline in consumer confidence comes as the government is counting on a sustained rise in consumer spending to keep the world's second-largest economy growing despite stagnant exports.

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