MNI BRIEF: Japan Consumer Confidence Rises

Japan’s consumer confidence index rose for the first time in six months, climbing 1.6 points to 32.8 in May from 31.2 in April, data released Thursday by the Cabinet Office showed, leading the government to maintain its assessment from the previous month, following a downgrade in the April survey.

The improvement in sentiment eased concerns that private consumption may lose further momentum amid persistent pressure from high food prices, particularly rice, and three consecutive months of negative real wage growth.

All major sub-indexes, covering overall economic well-being, income expectations, labour conditions, and willingness to purchase durable goods, posted gains.

Meanwhile, the sub-index on asset prices, which is not included in the overall index calculation, rose to 39.2 in May from 34.1 in April.

The share of respondents expecting consumer prices to rise increased slightly to 93.6% in May from 93.2% in April, while those expecting prices to decline fell to 2.2% from 2.3%. However, the percentage of respondents forecasting CPI growth of more than 5% a year ahead dropped to 55.5% in May from 60.0% in April.