— Japan Sep SA Consumer Confidence Index 38.6 Vs Aug 37.0

TOKYO (MNI) – Japan’s consumer confidence posted the first rise in
two months in September, as continued recovery of earthquake-ravaged
supply chains buoyed confidence in job security, data released by the
Cabinet Office showed on Tuesday.

The closely watched index stood at 38.6 in September, up from 37.0
in August. It hit 33.1 in April, the lowest since April 2009.

The Cabinet Office upgraded its assessment based on the September
index, saying that “consumer confidence is improving.”

In the previous month’s report, the Cabinet Office said that
“consumer confidence is now showing signs of a recovery, although it
remains in a severe state.”

In September, all four sub-indexes — overall economic well-being,
job security, income growth and willingness to buy durable goods —
improved from the previous month.

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

The survey showed the labor conditions sub-index rose 2.9 points to
34.7 in September, while the sub-index for willingness to buy durable
goods increased 1.4 points to 40.1 last month.

The latest survey also suggested a setback in the recent upward
bias in consumer inflation expectations.

The percentage of people forecasting higher prices in a year’s time
slipped to 67.2% of the total on an unadjusted basis, down from 70.5% in
July. It hit 73.2% in April, the highest since November 2008.

The inflation expectations index posted the third straight monthly
fall.

Meanwhile, the percentage of people expecting lower prices 12
months ahead stood at 6.3% in last month, down from 6.6% in August. It
reached 5.7% in April, the lowest since October 2008, when the ratio was
at 4.2%.

An annual inflation rate below 2% was forecast by 23.2% of those
surveyed in the latest month, down from 23.7% in August.

Inflation in a range of 2% to 5% was forecast by 29.4% of the total
in the latest month, versus 30.7% in the previous month.

Inflation at 5% or over was forecast by 14.6% of the total in the
latest month vs. 16.1% in the previous month.

Price drops of less than 2% were seen by 3.5% of the polled in the
latest month vs. 3.4% in the previous month.

Price drops in a range of 2% to 5% were forecast by 1.7% of those
surveyed in the latest month vs. 2.2% 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 compared with 1.0% in the previous
month.

tokyo@marketnews.com
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