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Japan Consumer Confidence April 2020

Japan: Consumer confidence plunges to record low in April

The consumer confidence index fell to 21.6 in April from 30.9 in March, marking the lowest reading since the index began being released on a monthly basis in April 2004, almost certainly due to the negative economic effects of the coronavirus pandemic. The index measures consumer expectations about the economy for the next six months—a reading above the 50.0-threshold suggests consumers are optimistic, whereas a reading below the threshold points to pessimism.

Consumers were less confident about all aspects of their economic lives in April, with perceptions of income growth, employment, willingness to buy durable goods and overall livelihoods all deteriorating. Separately, the percentage of consumers who expected prices to increase one year in the future rose to 70.7% in April, up from 70.3% in March.

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