— Japan Apr Consumer Confidence Index 42.0 Vs Mar 40.9
— Japan Apr Consumer Confidence Highest Since Oct 2007
— Japan Consumer Confidence Posts 12th Y/Y Rise In Row
— Japan Govt Keeps View: Cons Conf Continues Picking Up

TOKYO (MNI) – Japan’s consumer confidence index posted its fourth
consecutive monthly gain, rising to 42.0 in April from 40.9 in March as
fears of job and wage cuts continued to ease and more people were still
willing to buy durable goods, the Cabinet Office said Tuesday.

The continued more optimistic outlook for income growth is also
behind the improving confidence.

The headline index hit the highest level in more than two years
since 42.8 marked in October 2007, clearly recovering to the
pre-financial crisis level.

But the Cabinet Office left its assessment unchanged from the
previous month, saying: “Consumer confidence continued picking up.”

Last month it upgraded its assessment for the second straight
month, saying, “Consumer confidence has shown signs of a pickup.”

The index has been recovering since the January survey after the
second straight monthly decline in December last year. November’s
decline was the first in 11 months.

In April, all four sub-indexes for consumer confidence —
indicating overall economic well-being, income growth, employment and
willingness to buy durable goods — posted month-on-month gains for the
fourth straight month.

From a year earlier, the overall index rose 9.6 points in April,
marking the 12th consecutive year-on-year rise, after rising 12.0 points
in March.

The index showing sentiment on asset values, which is not included
in the overall consumer confidence index, rose by 2.4 points to 40.6 in
April in line with a stock market recovery, posting the second
consecutive month-on-month rise after rising 0.4 point in March.

The 40.6 is the highest since December 2007, when it was at 40.8.

Among consumer confidence index components, the sub-index for
sentiment on overall livelihood rose to 42.4 in April from 41.2 in
March, up for four months in a row. It was the highest level since
June 2007, when the index was also at 42.4.

The index rose 8.6 points from a year before, posting the 13th
consecutive y/y gain after rising 10.1 points in March.

The income growth sub-index climbed to 40.4 in April from 39.5 in
March, posting the fourth consecutive m/m gain. It was the highest level
since November, 2007, when it was at 40.7.

It rose 7.0 points from a year earlier, up for the 10th straight
month.

The employment conditions sub-index rose to 38.3 in April from 35.9
in March, the fourth consecutive m/m rise. It continued to rise sharply
from a year earlier, up 15.0 points, the 10th consecutive y/y gain. The
level is the highest since January 2008, when it was at 38.6.

The sub-index for willingness to buy durable goods rose to 47.0 in
April from 46.8 the previous month, up for the fifth straight month. The
level is the highest since July 2009, when it rose to 47.3.

From a year earlier, it rose 8.0 points, showing the 13th straight
y/y rise.

Until September 2009, the overall index had been recovering
steadily from the record low of 26.2 hit in December 2008. It was
unchanged at 40.5 in October 2009, remaining at the highest level since
42.8 in October 2007, but there were already signs that confidence had
started to erode.

The index reached its most recent peak of 48.4 in February 2007,
but had trended downward till December 2008.

The latest survey was conducted on April 15, covering 6,720
households, of which 5,038 responded.

The consumer confidence index is based on replies to a survey
asking about four aspects of consumer sentiment: the perception of
overall livelihood, income growth, employment conditions and the
willingness to purchase durable goods.

Respondents are asked if they see improvement, deterioration, or no
change in these areas over the coming six months.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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