FX.co ★ Japan Consumer Confidence Weakens To 21-Month Low

Japan's consumer confidence took an unexpected downturn in January, plummeting to its lowest point in nearly two years, as revealed by the Cabinet Office's survey data published on Wednesday.

The seasonally adjusted consumer confidence index fell to 35.2 in January, down from 36.2 in December. This decline ran counter to economists' expectations, who had anticipated an increase to 36.6.

Notably, this latest figure matches the lowest level recorded since April 2023, when the index was similarly at 35.2.

The survey, conducted on January 15, encompassed responses from 8,400 households.

Breaking down the components, the index measuring overall livelihood experienced a drop of 1.9 points to 32.2. The sub-index assessing the willingness to purchase durable goods also declined, falling to 27.5 from a previous 29.4.

Additional data indicated a slight decrease of 0.2 points in the employment index, landing at 41.0, while the income growth index saw a minor reduction to 39.9, compared to 40.2 in the preceding month.