Japanese households became the most pessimistic they've been in almost four years in November as fuel and food prices rose even while wage growth remained stationary, leaving consumers even less willing and able to spend. An index that measures confidence among households with two or more people slid to 39.8 last month from 42.8 in October,
the Cabinet Office said in Tokyo today. A reading below 50 means pessimists outnumber optimists.
The drop prompted the government to cut its assessment of consumer confidence for a second straight month, the first back- to-back downgrade ever. Slower consumer spending at a time when demand in Japan's major export markets may be waning will almost certainly compel the central bank to keep borrowing costs oh hold in coming months.
