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by Staff Writers Tokyo (AFP) Dec 12, 2011 Japanese consumer confidence weakened in November, registering the first decline in seven months, the government said Monday, amid growing concerns over Europe's debt crisis and a strong yen. The Cabinet Office said the index of sentiment among households made up of two or more people fell 0.5 point from the previous month to 38.1 in November. Any reading below 50 indicates pessimism outweighing optimism. In April, the index plunged to 33.1 after Japan's earthquake and tsunami left 20,000 dead or missing and sparked the world's worst nuclear crisis since Chernobyl. On Monday, the government cut its assessment of consumer confidence in line with the drop, saying it was "roughly flat," compared with a previous assessment in October which said consumer confidence was becoming "moderate." The consumer survey studies four categories: general livelihood, income growth, employment conditions and plans to buy new durable goods. There are fears any further deterioration in the European debt crisis could cause serious problems for Japan's export-dependent economy as it gradually recovers from the impact of the March disasters. The strength of Japan's currency -- which hit fresh post-war highs in recent months -- has also weighed on consumer confidence. A strong yen hurts Japanese exporters by making their products relatively more expensive overseas and shrinks their foreign earnings when repatriated. The consumer survey received valid responses from 5,033 households, Kyodo News said.
The Economy
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