Middle East War Dents Japan Consumer Confidence
Undercut by Middle East war and rising fuel prices, Japan's seasonally adjusted Consumer Confidence Index declined to 33.3 in March, down from 39.7 in February, reported the Cabinet Office on Thursday.Consumer confidence index readings above 50 indicate optimism and improved mood, while results below 50 reflect pessimism.In the subcategories, the March index for "overall livelihood" logged 29.7 in March, down from 39.5 in February.For "income growth," the consumer index struck 39.8 in March, off from 42.3 in February, said the Cabinet Office.The "employment" index posted at 37.6 in March, off from 43.3 in the previous month.And the "willingness to buy durable goods" index declined to 26.0 in March, off from 33.7 in February, said the Cabinet Office.With fuel bills in mind, 93.1% of survey respondents in March expected overall prices to rise in the next 12 months, noted the Cabinet Office.The consumer confidence index survey was conducted on March 15, and polled 8,400 households, with a 76.3% response rate, added the Cabinet Office.The declining consumer confidence report followed on the heels of a soft Economy Watchers bulletin, issued on Wednesday.Japan's Economy Watchers Survey index fell to 42.2 in March from 48.9 in February, striking the lowest level since February 2022.The monthly Japan Economy Watchers Survey measures the economic sentiment of workers in consumer-facing industries, such as taxi drivers, hotel staff, and restaurant employees.