The Japanese consumer sentiment index reached the highest level in almost five years in the April-June period, according to the Bank of Japan. The news reflects the solid internal demand that is sustaining the economic recovery of the country, according to analysts.
The index reached minus 39.5 in the period, improving from minus 55.6 in the previous survey, in March. It is the highest level since September 2007 and the third improvement in a row.
The value of the index is calculated by subtracting the number of consumers who think economic conditions are worse than a year earlier from those who think they are better.
About 7.5 percent of the respondents think their or their families’ income has increased from a year earlier. In the previous survey, the percentage was just 6.7%.
Japanese businesses are sharing the more optimistic view over the economy, according to the latest quarterly tankan survey of the central bank. The survey showed an improving of the index to minus 1 in the April-June period, from minus 4 in the previous quarter.