— Japan Aug Consumer Confidence Index 40.5 Vs July 39.7
— Japan Consumer Confidence Index Posts 1st Rise in 3 Months
— Japan Govt Repeats View: Confidence Is Weakening

TOKYO (MNI) – Japan’s Consumer Confidence Survey index posted the
first rise in three months in August, as more people believed that the
labor market and income growth would improve in the coming six months,
data released by the Cabinet Office showed on Monday.

The closely watched index rebounded to 40.5 in August from 39.7 in
July, reaching the highest level since 40.7 in May.

But the Cabinet Office maintained its assessment that “consumer
confidence is weakening” after downgrading it last month.

In August, all four sub-indexes — measuring overall economic
well-being, labor conditions, income growth and the timing for buying
durable goods — rose from the previous month.

The labor conditions sub-index jumped 1.9 points to 38.7 while the
sub-index on the timing for buying durable consumer goods rose 0.8 point
to 42.8.

Slight gains were also seen in the sub-index on overall economic
well-being, up 0.1 point at 40.7, and the one on income growth, up 0.2
point at 39.6.

The latest survey was conducted on Aug. 15, covering 6,720
households, of which 5,029 responded.

Meanwhile, the latest survey indicated that consumer inflation
expectations have improved.

The percentage of people forecasting higher prices in a year’s time
stood at 62.0% of the total on an unadjusted basis in August, up from
60.6% in the previous month. It was the first rise in four months.

Meanwhile, the percentage of people expecting lower prices was 6.1%
last month, down further from 7.4% previously.

The percentage of people foreseeing no change in prices fell to
24.7% in August from 24.9% in July.

An annual inflation rate below 2% was forecast by 22.6% of those
surveyed in the latest month, unchanged from the previous month.

Inflation in a range of 2% to 5% was forecast by 25.8% of the total
in the latest month, up from 24.8% in the previous month.

Inflation at 5% or over was forecast by 13.8% of the total in the
latest month, also up from 13.2% in the previous month.

Price drops of less than 2% were seen by 3.3% of the polled in the
latest month, down from 4.1% 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, down slightly from 2.0% in the previous
month.

The annual rate of price drops at 5% or over was foreseen by 0.9%
of the total in the latest month, down from 1.3% in the previous month.

tokyo@marketnews.com
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