MNI BRIEF: Japan Confidence Falls First Time In Seven Months

The Japanese consumer confident index in April posted its first drop in seven months to 38.3 from March's 39.5, as all components worsened, data released by the Cabinet Office on Thursday showed.

The latest consumer confidence survey was conducted from April 6-22 after the Bank of Japan ended the negative interest rate and yield curve control in March. (See MNI: Upside Risks To Prices Tolerable - BOJ Minutes)

The result does not align with the BOJ's more optimistic view following an analysis of household survey microdata which showed a high percentage of households expect their income to increase.

An official at the Cabinet Office said price rises over April drove the worsening consumer sentiment, but added the government cannot judge whether the underlying trend has changed.

The sub-index on asset prices, not included in calculating overall consumer confidence, stood at 46.9 in April, up from 46.3 in March, while the share of respondents projecting consumer price gains rose to 93.0% from 92.4, the highest level since September 2023.

The Cabinet Office kept its assessment unchanged.