Japanese Central Bank survey showed that households’ economic outlook confidence in March jumped to an eight-year high of minus 8.5 from minus 23.1 in December. 62.4% of households expect prices to rise a year from now, up from 60% in December.
The growth in household economic outlook confidence shows that the initial pains from the coronavirus pandemic was falling.
The BOJ poll follows a separate survey by the central bank that showed business confidence was improving to pre-pandemic levels in the first quarter.
Despite the confidence, a resurgence of infections and weak wage growth cloud the outlook for consumption.
Many households saw income shrink and expect to slash expenditure a year from now, underscoring the uneven recovery of Japan.
The BOJ survey is expected to be crucial as the central bank conducts quarterly review of growth and price forecasts at its next rate review on April 26-27.
Japanese stocks are currently gaining as the Yen loses. NI225 is up 0.12%, USDJPY is up 0.02%