Japan's March consumer confidence up to highest level since May 2007

Kamis, 18 April 2013 01:09

(TOKYO-Kyodo) Japan's consumer confidence in March improved to its highest level since May 2007 as Prime Minister Shinzo Abe's economic policies weakened the yen and drove up stocks, raising hopes for an economic recovery, a government survey showed Wednesday.

The seasonally adjusted index of sentiment among households made up of two or more people climbed for the third straight month, up 0.6 point to 44.8 from the previous month, the Cabinet Office said, though it still stayed below 50. Readings below 50 indicate pessimists outnumber optimists.

The Cabinet Office upgraded its basic assessment of the index, saying consumer confidence "is showing signs of improvement." Last month, the government said it is "picking up."

The survey, meanwhile, showed that 71.8 percent of households predict consumer prices in the country will rise in the year ahead, up 2.3 points from 69.5 percent in February, suggesting the pledge by Abe's administration and the Bank of Japan to lift the economy out of deflationary recession has bolstered inflation expectations.

Two of the index's four components rose, with consumers' view of employment conditions gaining 1.7 points to 48.4, buoyed by the government's decision to take a stimulus package in an attempt to create at least 600,000 jobs.

Consumers' near-term willingness to purchase new durable goods climbed 0.7 points to 46.1. Their assessment of income growth and that of livelihood were flat at 41.6 and 43.0, respectively.