TOKYO. – Japan’s consumer confidence index nudged up in April to mark its first increase in six months after the end of COVID-19 curbs in late March, but inflation expectations hit a record for the third month in a row.
A Cabinet Office survey showed the sentiment index for general households, which includes views on incomes and jobs, was at 33.0 in April, up slightly from 32.8 in March.
“Consumer sentiment turned positive as COVID-19 cases fell further and as the lifting of curbs paved the way for a reopening of the economy,” a government official told a media briefing.
The survey, conducted April 7-20, also found 93.7 percent of consumers expect prices of goods to rise in next 12 months – the third straight month of record highs under comparable data dating back to April 2013.
The proportion of consumers who believe prices will increase 5 percent or more was 55.7 percent, also the highest on record.
The government kept its assessment of consumer confidence unchanged as the improvement in April was relatively small, saying it appears weak.
The rising cost of living has fanned fears of a potential slowdown in consumer spending later this year. – Reuters
