— Japan Nov Watchers’ Forward-Looking Index 41.4 Vs Oct 41.1
— Japan Watchers’ Outlook Index Posts 1st Rise In 2 Months
— Japan Govt Repeats View: Econ Shows Soft Spots After Pickup

TOKYO (MNI) – The Economy Watchers’ Survey index for current
conditions in Japan jumped to 43.6 in November from 40.2 in October,
posting the first rise in four months, thanks to rush purchases of
consumer electronics and higher demand for winter clothing in colder
temperatures, the Cabinet Office said on Wednesday.

The government repeated its assessment of the sentiment from last
month, saying that the latest survey showed 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
44th straight month in November.

The 3.4-point fall in November was due to more people saying things
were getting “slightly better” or “better” and fewer people seeing
conditions as being “slightly worse.” It followed a 1.0-point drop in
October and a 3.9-point plunge in September.

Some large electronics retail stores reported long lines of
customers on Nov. 30, who sought to take advantage of full reward points
offered by the government for buying flat-screen TVs, air
conditioners/heaters and refrigerators that require less power to
operate.

The program started in May 2009 and is scheduled to end on March
31, 2011. It is aimed at boosting consumer spending, conserving energy
and helping households convert to digital TVs from analog receivers.

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, rebounded to 41.4 in November from 41.1 in
October, marking the first rise in two months, on eased fears that the
yen’s rise could hurt business and job offer prospects.

The index stayed below the key 50 level for 42 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.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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