— Japan Mar SA Consumer Confidence Index 40.3 Vs Feb 39.9
— Japan Govt Keeps View: Confidence Continues to Pick-up

TOKYO (MNI) – Japan’s consumer confidence surged to one-year high
in March as more people believed labor conditions would improve and
incomes would rise in the coming six months, data released by the
Cabinet Office showed on Tuesday.

The closely watched index stood at 40.3, the highest reading since
February 2011, when the index was at 41.2 and up from 39.9 in February.

The Cabinet Office maintained its assessment, saying, “Consumer
confidence continues to pick-up.”

In March, all four sub-indexes — overall economic well-being,
labor conditions and income growth, income growth and the timing of
buying durable goods rose from the previous month.

The latest survey was conducted on March 15, covering 6,720
households, of which 5,030 responded.

The labor conditions sub-index rose 0.7 point to 38.6 in March,
while the sub-index on income growth increased 0.4 point to 39.4, the
first rise in two months.

Meanwhile, the latest survey indicated an increase in consumer
inflation expectations.

The percentage of people forecasting higher prices in a year’s time
rose to 65.9% of the total on an unadjusted basis in March, up from
63.4% in the previous month.

Meanwhile, the percentage of people expecting lower prices 12
months ahead stood at 6.7% last month, down from 7.3% in the previous
month.

An annual inflation rate below 2% was forecast by 23.8% of those
surveyed in the latest month, up from 22.6% in the previous month.

Inflation in a range of 2% to 5% was forecast by 27.1% of the total
in the latest month versus 27.4% in the previous month.

Inflation at 5% or over was forecast by 15.0% of the total in the
latest month, up from 13.4% in the previous month.

Price drops of less than 2% were seen by 3.2 of the polled in the
latest month vs. 4.0% in the previous month.

Price drops in a range of 2% to 5% were forecast by 2.4% of those
surveyed in the latest month, up from 2.2% in the previous month.

The annual rate of price drops at 5% or over was foreseen by 1.1%
of the total in the latest month, unchanged from the previous month.

tokyo@marketnews.com
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