Japan's consumer sentiment improves

Japan's consumer confidence rebounded in January after two months of sharp deterioration as uncertainty over economic prospects eased at the beginning of 2010, the government said today.

The index of sentiment among households made up of two or more people gained 1.4 points from December to 39.0, the Cabinet Office said.

But the gauge remained below the threshold of 50, indicating that pessimistic views outnumber optimistic ones.

The government maintained its basic assessment that consumer sentiment remains weak, after the index deteriorated in the previous two months, by 1.0 point in November and by 1.9 points in December.

For January, an official said the government's stimulus policies, including steps to prevent further tightening in job markets, have had some favorable effects on the economy as a whole.

The stimulus measures also include the extension of the government subsidy programme to promote the purchase of energy-efficient and eco-friendly home appliances.

The index is calculated based on whether consumers expect the economy in four areas -- livelihoods, income growth, employment and willingness to buy durable goods -- will "improve," "improve somewhat," "remain unchanged," "deteriorate somewhat" or "deteriorate" over the coming six months.