Household sentiment rose to a 14-month high in May, adding to signs that the deepest postwar recession may be easing.
The confidence index climbed to 35.7 from 32.4 in April, the Cabinet Office said Friday. It has improved every month since tumbling to a record low of 26.2 in December.
A number below 50 means pessimists outnumber optimists.
Prime Minister Taro Aso's three stimulus packages and a rebound in stocks are instilling confidence in households that the worst of the nation's slump is over.