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Thursday, 16th February 2012
In Business In Japan,

Consumer confidence helps Japan economy head for recovery

The economy in Japan is slowly beginning to pick back up with the help of consumer spending, a report published by the government said today (February 16th).

While incomes remain flat, renewed consumer confidence is helping to invigorate spending and back up the government's earlier assessment that an upturn in the economy is on its way, Reuters reported.

However, there remain worries that the ongoing crisis in the eurozone could have a ripple-effect that will put the brakes on the economy and the government was cautious regarding its optimism.

Minoru Masujima, the Cabinet Office's director of macroeconomic analysis, said: "Domestic demand is relatively firm," the news agency quoted.

"Consumer sentiment has been picking up these last few months, so confidence is recovering after the March disaster."

The government report reiterates the view held by the Bank of Japan, which believes that while the economy looks to be moving closer to recovery, there is still a level of uncertainty prevailing.

Discussions are set to take place in Japan that could see the government extract money from long-dormant bank accounts to help fund the post-disaster reconstruction work.

Written by Mark Smith