— Japan Dec Watchers’ Index 45.1 Vs Nov 43.6, 2nd Rise In Row
— Japan Dec Watchers’ Forward-Looking Index 43.9 Vs Nov 41.4
— Japan Watchers’ Outlook Index Posts 2nd Rise In Row
— Japan Govt Upgrades View: Econ Shows Signs Of Picking Up

TOKYO (MNI) – The Economy Watchers’ Survey index for current
conditions in Japan rose to 45.1 in December from 43.6 in November,
posting the second rise in a row, thanks in part to higher demand for
big-ticket items during Christmas sales, the Cabinet Office said on
Wednesday.

The improvement prompted the government to upgrade its assessment
of public sentiment for the first time since March 2010, saying the
latest survey showed that “the economy has shown signs of picking up.”

Until last month it said that “the economy has been picking up at a
moderate pace but it is now showing soft spots.”

The headline index stood below the key 50 level — the diving line
between net positive and net negative responses to the survey — for the
45th straight month in December.

The 1.5-point rise in December was due to more people saying things
were getting “slightly better” and fewer people seeing conditions as
being “slightly worse” or “worse.”

It followed a 3.4-point jump in November and a 1.0-point fall in
October.

Sales of some consumer electronics slumped after Dec. 1, when the
government reduced reward points it offers for buying TVs, air
conditioners/heaters and refrigerators that operate on lower power, but
demand for high-end goods led Christmas sales, the Cabinet Office said.

It also noted that some manufacturers saw increased orders from
overseas.

In July and April 2010, the index for current conditions hit 49.8,
the highest level in about three years since 50.8 in March 2007. About
three years ago, the Japanese economy was still in its longest post-war
expansion period that ended in October 2007.

Meanwhile, the forward-looking index, which gauges conditions two
to three months ahead, rose to 43.9 in December from 41.4 in November,
showing the second gain in a raw, as improvement in consumption is
expected to continue and manufacturers have sufficient backlog orders.

The index stayed below the key 50 level for 43 months in a row.

In January 2009 the outlook index rebounded to 22.1 from a record
low of 17.6 hit in December 2008.

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

The survey outcome is monitored closely by the Bank of Japan as it
appears to reflect retail sector sentiment more accurately than some
other data.

The household sub-index for current conditions rose to 44.5 in
December from 42.4 in November, posting the second straight m/m rise.

The business sub-index (manufacturers and non-manufacturers serving
other businesses) stood at 44.1 in December, up from 43.5 in November,
up for the second month in a row.

The labor sub-index stood at 51.1 in December, down slightly from
51.2 in November, posting the first fall in two months.

tokyo@marketnews.com
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