— Japan Dec Watchers’ Current Index 47.0 Vs Nov 45.0
— Japan Watchers’ Current Index Posts 1st Rise in 2 Months
— Japan Dec Watchers Forward-Looking Index 44.4 Vs Nov 44.7
— Japan Ups View: Econ Improving Gradually Despite Yen’s Rise

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

After showing ups and downs in recent month, the current conditions
index jumped to 47.0 last month from 45.0 in November, buoyed by brisk
demand for winter clothing amid low temperature and solid holiday season
retail sales.

The government upgraded its assessment, saying that the economy is
“picking up gradually despite the effects of the strong yen.”

In the previous month’s report, the government said that 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 44.4 in December from 44.7 in November,
posting the sixth straight monthly drop.

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 46.5 in
December from 43.6 in November.

The business sub-index for current conditions was unchanged at 45.4
in December as the adverse effects of the strong yen on exports were
offset by the recovery from the earthquake disaster and eased supply
chain disruptions caused by the recent flooding in Thailand.

The labor sub-index rose to 54.9 in December from 53.0 in November.

The Cabinet Office said the survey was conducted between Dec. 25
and Dec. 31.

tokyo@marketnews.com
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