— Japan June Consumer Confidence Index 40.4 Vs May 40.7
— Japan Consumer Confidence Index Posts 1st M/M Fall in 2 Mths
— Japan Govt Downgrades View: Confidence Largely Flat

TOKYO (MNI) – Japan’s Consumer Confidence Survey index dipped from
highest level in 15 months in June as more people believed job security
and income growth would worsen in the coming six months, data released
by the Cabinet Office showed on Tuesday.

The closely watched index fell to 40.4 in June from 40.7 in May,
which was the best reading since February 2011, when it stood at 41.2
before the March earthquake disaster triggered a plunge in the index.

The Cabinet Office downgraded its assessment, saying, “consumer
confidence turned largely flat.”

In the previous month’s report, it said that “consumer confidence
continues to pick up.”

In June, two of the four sub-indexes — labor conditions and income
growth — fell from the previous month.

The latest survey was conducted on June 15, covering 6,720
households, of which 5,030 responded.

In June, the labor conditions sub-index fell 1.3 points to 38.0
while the sub-index on income growth declined 0.4 point to 39.7.

The sub-index for overall economic conditions was flat at 41.3 and
the sub-index showing consumer willingness to buy durable goods rose 0.3
point to 42.5.

Meanwhile, the latest survey indicated a slip in consumer inflation
expectations.

The percentage of people forecasting higher prices in a year’s time
stood at 61.3% of the total on an unadjusted basis in June, down from
65.5% in the previous month.

Meanwhile, the percentage of people expecting lower prices 12
months ahead was at 7.7% last month, up from 6.7% in the previous month.

An annual inflation rate below 2% was forecast by 23.0% of those
surveyed in the latest month, down from 25.1% in the previous month.

Inflation in a range of 2% to 5% was forecast by 25.6% of the total
in the latest month versus 26.6% in the previous month.

Inflation at 5% or over was forecast by 12.7% of the total in the
latest month, down from 13.8% in the previous month.

Price drops of less than 2% were seen by 4.3% of the polled in the
latest month, up from 4.0% in the previous month.

Price drops in a range of 2% to 5% were forecast by 2.2% of those
surveyed in the latest month, up from 2.0% in the previous month.

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

tokyo@marketnews.com
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