Japan's consumer sentiment improved in May for the fifth straight month as an economic recovery helped ease concern over employment prospects, government data showed Thursday.
The index of confidence among households made up of two or more people rose by 0.8 point from the previous month to 42.8, the highest reading since October 2007 when it matched that figure, the Cabinet Office said in its monthly survey. Despite the continued improvement, the sentiment index remained below the threshold of 50, indicating that pessimists outnumbered optimists.
The office left its assessment of the country's consumer confidence unchanged, saying it "has continued improving." "From the perspective of consumer sentiment, it was confirmed that the nation's economy is entering a recovery phase," Cabinet Office Parliamentary Secretary Keisuke Tsumura said at a press conference. "But considering the recent sluggish stock markets, which often have a large impact on consumers' sentiment, we refrained from raising the assessment," he said.
The office left its assessment of the country's consumer confidence unchanged, saying it "has continued improving." "From the perspective of consumer sentiment, it was confirmed that the nation's economy is entering a recovery phase," Cabinet Office Parliamentary Secretary Keisuke Tsumura said at a press conference. "But considering the recent sluggish stock markets, which often have a large impact on consumers' sentiment, we refrained from raising the assessment," he said.
The confidence index is calculated based on whether consumers expect the economy to "improve," "improve somewhat," "remain unchanged," "deteriorate somewhat" or "deteriorate" over the coming six months in four areas -- livelihoods, income growth, employment and willingness to buy durable goods.
Three of the four components marked increases. Employment gained 1.8 points to an index reading of 40.1, income growth grew 0.7 point to 41.1, and livelihoods went up 0.6 point to 43.0. But willingness to buy durable goods fell 0.1 point to 46.9, marking the first drop in six months following a revision made to the government incentive program for the purchase of environment-friendly consumer appliances in April.
Three of the four components marked increases. Employment gained 1.8 points to an index reading of 40.1, income growth grew 0.7 point to 41.1, and livelihoods went up 0.6 point to 43.0. But willingness to buy durable goods fell 0.1 point to 46.9, marking the first drop in six months following a revision made to the government incentive program for the purchase of environment-friendly consumer appliances in April.
The survey also showed that more people expected prices to rise, but Tsumura said this does not immediately change the government's view that the nation is mired in deflation. A price rise already happened on the wholesale front, where prices grew 0.4 percent in May from a year earlier, marking the first rise in 17 months after gradually slowing decline.
The percentage of respondents expecting rises in prices over the coming year surged by 6.8 percentage points from the previous month to 46.0. The percentage of those forecasting falls fell by 3.2 points to 13.1. The Cabinet Office surveyed 5,034 households across Japan on May 15, of which 74.9 percent responded. (Breitbart)
The percentage of respondents expecting rises in prices over the coming year surged by 6.8 percentage points from the previous month to 46.0. The percentage of those forecasting falls fell by 3.2 points to 13.1. The Cabinet Office surveyed 5,034 households across Japan on May 15, of which 74.9 percent responded. (Breitbart)
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