Japanese consumer confidence weak.

In spite of warnings from the Japanese Cabinet Office not to compare consumer confidence results for June 2007 with other months because of a change in the way the Cabinet Office conducts the basic survey (face to face since May 2007 as opposed to a mix of face to face and phone in other months) the message was clear. Japan's consumers are worried about rising prices. And it is this worry, according to the Cabinet Office (as reported by Reuters on July 11, 2007) that drove down Japanese consumer confidence in June 2007 (the most recent results.)

The Reuters story said, "The Cabinet Office survey's sentiment index for general households, which includes views on incomes and jobs, was 44.3 in June, down from 46.7 in March." The score was the lowest since June 2004. A reading under 50 points indicates that there are more pessimists among the country's consumers than optimists.

Questions in the survey are on the usual mix of subjects: Family finances, living conditions, jobs, and whether or not now is the right time to buy high ticket items (durable goods.)

According to Reuters, the Cabinet Office had previously characterized consumer confidence as "flat." But when the results of the survey were considered further it called consumer confidence "weak."

Price increases became the focus of consumer jitters because the increases affected often purchased items such as petroleum products--and one very common household staple in Japan: Mayonnaise.

Two thirds of survey respondents told the Cabinet Office that they expected prices to rise over the next year.