— Japan Mar Consumer Confidence Index 40.9 Vs Feb 39.8
— Japan Consumer Confidence Posts 11th Y/Y Rise In Row
— Japan Govt Upgrades View: Cons Conf Shows Signs of Pickup

TOKYO (MNI) – Japan’s consumer confidence index posted the third
consecutive monthly gain, rising to 40.9 in March from 39.8 in February
as fears of job and wage cuts continued to ease and more people were
still willing to buy durable goods, the Cabinet Office said Monday.

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.

This prompted the Cabinet Office to upgrade its assessment for the
second straight month, saying: “Consumer confidence has shown signs of a
pickup.” This compares with its statement last month that confidence
“is nearly flat.”

The index 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 March, 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.

From a year earlier, the overall index rose 12.0 points in
March, marking the 11th consecutive year-on-year rise, after
rising 13.1 points in February.

The index showing sentiment on asset values, which is not included
in the overall consumer confidence index, rebounded by 0.4 point to 38.2
in March in line with a stock market recovery, posting the first
month-on-month rise in two months after falling 0.3 point in February.

Among consumer confidence index components, the sub-index for
sentiment on overall livelihood rose to 41.2 in March from 40.7 in
February, up for three months in a row and hitting the highest level
since 42.2 marked in September 2007.

The index rose 10.1 points from a year before, posting the 12th
consecutive y/y gain after rising 11.3 points in February.

The income growth sub-index climbed to 39.5 in March from 38.8 in
February, posting the third consecutive m/m gain and rising to the
highest level since 39.6 marked in December 2007. It rose 7.5 points
from a year earlier, up for the ninth straight month.

The employment conditions sub-index rose to 35.9 in March from
34.2 in February, the third consecutive m/m rise. It continued to rise
sharply from a year earlier, up 17.6 points, the ninth consecutive y/y
gain. But the level is only the highest since October 2009, when it fell
to 36.1 from 36.4 in September.

The sub-index for willingness to buy durable goods rose to 46.8 in
March from 45.4 the previous month, up for the fourth straight month.
From a year earlier, it rose 12.6 points, showing the 12th straight y/y
rise. It was the highest level since 47.3 in July 2009.

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 March 15, covering 6,720
households, of which 5,028 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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