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[March 13, 2006]

Consumer confidence rises in Feb. for 2nd month in row+

(Japan Economic Newswire Via Thomson Dialog NewsEdge)TOKYO, March 13_(Kyodo) _ Consumer confidence improved in February for the second consecutive month, setting a new high in the current economic rebound phase for as many months in a row, according to a monthly report released by the Cabinet Office on Monday.


The index of confidence among households with two or more people came to an adjusted 49.8 for February, up 0.3 point over the previous month, the government agency said.

Although the index surpassed the previous high, set only in January, in the current expansion phase that began in January 2002, the office kept its overall consumer sentiment assessment unchanged from December, saying the consumer confidence "is improving."

A reading below 50 indicates that pessimists outnumber optimists. Consumer spending accounts for more than half of Japan's gross domestic product.

The consumer sentiment data are calculated on the basis of whether consumers expect the economy in the four categories of living conditions, income growth, employment and willingness to buy durable goods to "improve," "improve somewhat," "remain unchanged," "deteriorate somewhat" or "deteriorate" in the coming six months.

In the February survey, the readings of employment and income growth rose 1.4 points and 0.2 point, respectively. But the reading of living conditions fell 0.2 point, while that of willingness to buy durable goods remained level.

The office polled 6,720 households across the country on Feb. 15, of which 6,704 responded.

Among other findings by the survey, 50.9 percent of the respondents expected prices to rise in the coming year. The ratio of households with such expectations topped 50 percent for the sixth straight month.

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