— Japan July Watchers’ Current Index 52.6 Vs Jun 49.6
— Japan Watchers’ Current Index Posts 4th M/M Rise in Row
— Japan July Watchers Forward-Looking Index 48.5 Vs Jun 49.0
— Japan Govt Says: Economy Shows Some Recovery Move
— Japan Tohoku Area July Watchers Current Index 59.5 Vs Jun 52.8
— Japan Tohoku-Area July Outlook Index 51.0 Vs Jun 49.2

TOKYO (MNI) – The Economy Watchers’ Survey index for current
economic conditions in Japan hit the highest mark in more than five
years in July, buoyed by steady progress in Japan Inc’s efforts to fix
the quake-ravaged supply chain, data released by the Cabinet Office on
Monday showed.

The current conditions index jumped to 52.6 in July, the highest
since April 2006 when it was at 54.6 and up from 49.6 in June. It hit
27.7 in March, the lowest level since 19.4 in February 2009 at the
height of the global recession.

The headline figure marked a fourth consecutive month of
improvement and saw the index climb above the key level of 50 for the
first time in 52 months.

The government said that while there is a lingering impact from the
earthquake, the economy is now recovering.

Meanwhile, the forward-looking index, which gauges conditions two
to three months ahead, eased to 48.5 in July from 49.0 in June, the
first fall in four months.

The outlook index has stayed below the key 50 level for 50 months
in a row. It hit a record low of 17.6 in December 2008.

The watchers’ index gauges whether respondents with jobs most
sensitive to economic conditions — taxi and truck drivers, department
store sales staff as well as restaurant and shop owners — believe
economic conditions have improved or worsened from three months before.

The household sub-index for current conditions rose to 51.8 in July
from 49.8 in June, the fourth straight monthly rise.

The business sub-index (manufacturers and non-manufacturers serving
other businesses) stood at 51.7 in July from 47.3 in June, posting a
third straight monthly rise.

The labor sub-index surged to 59.5 in July, the highest since
October 2006 and up from 53.4 in June, also a third straight rise.

The current index for the Tohoku region in the north, which was hit
hardest by the March 11 disaster, rose to 59.5 in July from 52.8 in
June, while the forward-looking index for the region climbed to 51.0 in
July from 49.2 in June.

Tohoku comprises seven prefectures including Iwate, Miyagi and
Fukushima along the Pacific coast.

The Cabinet Office said the survey was conducted between July 25
and July 30.

tokyo@marketnews.com
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