A Cabinet Office report, released on Monday, showed Japanese consumer confidence fell for the sixth straight month in December. According to the report, consumer sentiment dropped to 40.2 from 40.6 in the previous month. A figure above 50 shows positive consumer sentiment, while a number below 50 shows negative consumer sentiment.

The index of sentiment among households fell to 40.1 from 40.4. Economists had expected a reading of 41.6. The index measuring employment fell to 36.4 from 36.9. Willingness to buy durables dropped to 40.8 from 42.

In their statement, the Cabinet Office said sentiment is "weakening". They expect the Japanese economy to expand 1.5% in the year starting April 2011, down from 3.1% in 2010.