Japan consumer confidence falls

Japan's consumer confidence fell to the lowest level in six years as rising gasoline and food prices sapped households' spending…

Japan's consumer confidence fell to the lowest level in six years as rising gasoline and food prices sapped households' spending power.

The sentiment index dropped to 33.9 last month from 35.2 in April, the lowest since December 2001, the Cabinet Office said today in Tokyo.

Inflation near a decade high and rising unemployment prompted households to pare spending at the fastest pace in 19 months in April.

Consumers, whose purchases account for more than half of the economy, may not be able to bolster growth as higher oil and materials costs erode profits and discourage companies from raising wages.