Consumer Confidence Takes a Hit

In March, Japan's seasonally adjusted Consumer Confidence Index experienced a decline, dropping by 0.9 points to settle at 34.1, as reported by the Cabinet Office. This downturn reflects a cautious outlook among Japanese consumers.

Breaking Down the Components

The overall livelihood index saw a slight decrease of 0.6 points to 30.9, while the employment index faced a more significant drop of 1.7 points, landing at 39.2. On a brighter note, the income growth indicator rose by 0.7 points to 38.8, and there was a marginal increase in the willingness to buy durable goods, up by 0.2 points.

Consumer Expectations on Prices

Survey responses revealed shifting expectations regarding future prices. Only 2.1% of respondents anticipated price drops in the coming year, a decrease of 0.3% from the previous month. Conversely, 93.9% expected prices to rise, marking a 0.6% increase. A negligible 0.1% fewer respondents believed prices would remain stable.