Japan consumer confidence rises for second straight month in February

March 16, 2010
By Ken Worsley

According to data released yesterday by the Cabinet Office, Japan’s Consumer Confidence Index rose by 0.8 points to 39.8 in February, showing an increase for the second consecutive month. The last time the Consumer Confidence Index showed an increase for two months in a row was in August 2009, when it hit 40.1 points.

The consumer confidence index itself contains five scores, each of which is considered positive when above 50, and pessimistic when below the 50 mark. Here’s a breakdown for February figures, with the change from the previous month:

Consumer Confidence Index: 39.8 (+0.8)
Overall Livelihood: 40.7 (+0.9)
Income Growth: 38.8 (+0.9)
Employment: 34.2 (+1.2)
Willingness to buy durable goods: 45.4 (+0.1)

As in January, the index showed an increase in all five categories, though four of the five rose by less than one point. Once again, the strongest gain was seen in employment. February’s 39.8 overall score was 13.1 points higher than the 26.7 points registered in the same month a year ago.

In the Price Expectations survey, results showed the percentage of consumers expecting lower prices in a year’s time fell for the second consecutive month, from 27.2% to 23.5%, while those expecting higher prices gained for the second straight month, rising from 29.9% to 31.1%. 36.2% responded that they expected prices to stay about the same.

The survey was conducted on February 15, covering 6,720 households, of which 5,031 submitted responses.

Filed Under Cabinet Office, Consumer Confidence Index, Economic Reports