Japan’s Consumer Sentiment declines June
The consumer sentiment index in Japan declined for the first time in six months in June, and in contrast to the overly optimistic expectations voiced by Prime Minister Shinzo Abe
The index dropped from May’s 45.7 points to 44.3 points and is in line of a string of recent data indicating a softening for consumer sentiment and real spending. Consumption accounts for about 60 % of the GDP Gross Domestic Product and helped the economy to register an annual growth rate of 4.1 % in the first three months of 2013. A Cabinet Office official sees the decline of the sentiment index because of jittery stock market conditions in June, after shares dived steep in late May.
On the other hand corporate goods price index rose 1.2 % in June, the fastest increase since November 2011. Experts locate the weakening yen to boost prices of imported energy and hikes in electricity. It is not excluded that high crude oil prices, combined with a weakening yen could increase firm’s burdens.
Also IMF the International Monetary Fund on Tuesday slashed its growth forecast for the global economy by 0.3 % to 3.1 % against its previous forecast in April.