Forex

TOKYO- Japanese consumer confidence fell to its lowest level in nearly five years in February on worries about deteriorating economic conditions, the labor market and inflation, according to government data released Wednesday.

The consumer confidence index fell to 36.1 in February, its lowest level since March 2003 when the index hit 34.7, and was down from 37.5 in January, the Cabinet Office data showed.

The index hit the boom-or-bust line of 50 in April 2006, its highest level since June 1990, but has since been below that mark.

The consumer confidence index is based on replies to questions on four aspects of consumer sentiment -- perception of general economic well-being, income growth, employment conditions and willingness to purchase durable goods.

Respondents were asked if there was improvement in these areas over the preceding three months. A reading above 50 means respondents reporting an improvement outnumbered those seeing a deterioration, while a reading below 50 means the majority of respondents believed conditions had worsened.

The sub-index for general economic well-being fell to 33.7 from 35.1, while the income growth sub-index dipped to 38.9, its lowest level since December 2003 when it stood at 36.6, and was down from 39.4 in January.

The employment conditions sub-index slipped to 37.0, also the lowest level since December 2003 when it was at 35.9, and was down from 38.6 in January.

The sub-index for willingness to buy durable goods fell to 34.8, the lowest level since March 1997 when the index was at 31.4, and was down from 36.7 in January.

The numbers also showed that 86.5 percent of those surveyed expected prices to rise over the subsequent 12 months, the highest percentage ever. In January the figure was 84.9 percent.

(1 US dollar = 102.92 yen)