The mood of Japanese consumers lifted modestly in May, but remained depressed compared with the pre-COVID-19 period.

The seasonally adjusted Japan consumer confidence index rose to 32.8 in May, up from 31.2 in April, but still below the 40 to 45 level that prevailed before 2019, reported the Cabinet Office on Thursday.

Nudging the overall index higher in May, consumers expressed more confidence in their overall livelihood, notching 30.2 by the sub-index, up from 27.3 in April.

For income growth in May, the sub-index logged at 38.3, up from 37.5 in April, while the employment sub-index rose to 37.3, up from 35.7.

The consumer willingness to buy durable goods was at 25.4 in May, up from 24.2 in April, added the Cabinet Office.

On inflation, the percentage of consumers who expected higher prices was 93.6% in May, up from 93.2% in April.

Of the remainder, 2.1% of consumers expected prices to remain largely unchanged, while 2.2% anticipated deflation.

Japan's tempered consumer mood may reflect the nation's economic picture.

Japan's gross domestic product (GDP) in fiscal 2024, ending in April, grew by 0.7% on year, and will grow by a modest 0.5% in fiscal 2025, estimated the Bank of Japan in its May forecast.