"Generating enough demand to create a sustained recovery has been an uphill battle for policymakers"
- Moody's Investors Service
Confidence among Japanese consumers improved more than initially was expected in January, a sign that government's pledge to introduce more bold measures boosted consumer confidence in the country. According to the Cabinet Office, a gauge of consumer sentiment improved for the first time in five months, adding 4.1 points to 43.3 from December's 39.2, the largest increase since the current survey was introduced in April 2004. At the same time, the indicator measuring people's livelihood and the employment indicator, both improved to 42.6 and 44.9, respectively. In the meantime, the world's third largest economy is expected to grow moderately this year, as exports should pick up supported by global economic rebound, improved market sentiment and Abe's ambitious economic policy.
"Generating enough demand to create a sustained recovery has been an uphill battle for policymakers," Moody's said in a commentary Thursday citing barriers to growth such as Japan's shrinking workforce and high savings rate.
"Corporate capital spending is likely to have bottomed out and head towards a recovery from January-March," said Tatsushi Shikano, a senior economist at Mitsubishi UFJ Morgan Stanley Securities.
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