— Correcting 1st Paragraph To Say 1st Drop In 2 Months
— Japan Nov Watchers’ Current Index 45.0 Vs Oct 45.9
— Japan Watchers’ Current Index Posts 1st Fall in 2 Months
— Japan Nov Watchers Forward-Looking Index 44.7 Vs Oct 45.9
— Japan Repeats View: Recovery Slowing Due to Yen’s Strength

TOKYO (MNI) – The Economy Watchers’ Survey index for Japan’s
current climate posted the first drop in two months in November while
outlook remained cloudy as the strong yen and the global slowdown dented
sentiment, Cabinet Office data released Thursday showed.

The current conditions index fell to 45.0 last month from 45.9 in
October, when it marked the first rise in three months.

The government left its assessment unchanged, saying the pace of
the export-led economic recovery is “slowing due to the impact of the
appreciation of the yen.”

Meanwhile, the forward-looking index, which gauges conditions two
to three months ahead, fell to 44.7 in November 45.9 in October, posting
the fifth straight monthly drop.

The business outlook picked up on easing effects of the flooding in
Thailand and expectations for higher demand from reconstruction of
earthquake-hit areas, but the overall outlook was hit by growing
uncertainties, the Cabinet Office said.

The outlook index has stayed below the key 50 level for 53 months
in a row.

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 dipped to 43.6 in
November from 44.5 in October as demand for TVs remained slow after rush
purchases in July while mild weather conditions in the first half of the
month hurt winter clothing sales.

Hit by the high yen and supply chain restrictions caused by the
massive floods in Thailand, the business sub-index for current
conditions deteriorated to 45.4 in November from 46.1 in October.

The labor sub-index plunged to 53.0 in November from 54.8 in
October as the persistent strong yen made firms cautious about hiring

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

** Market News International Tokyo Newsroom: 81-3-5403-4835 **

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