MNI 5 THINGS: Japan Oct Sentiment Rises on Food, Services

--Japan Oct Econ Watchers Current Index 49.5; Sep 48.6 

--Japan Oct Watchers Current Index Posts 1st Rise in 2 Months 

--Japan Oct Watchers Outlook Index 50.6; Sep 51.3 

--Japan Oct Watchers Outlook Index Posts 2nd Straight Drop 

--Japan Govt Keeps View: Moderate Econ Recovery Continuing 

--Japan Govt: Firms Concerned Over Rising Costs, Trade Impact

     TOKYO (MNI) - Japan's current sentiment index rose in October, thanks to

recovering demand for food and services after a disaster-hit September, a key

government survey released Thursday showed.

     The survey indicates whether respondents with jobs most sensitive to

economic conditions -- taxi and truck drivers, department-store sales staff and

restaurant and shop owners -- think economic conditions have improved or

worsened from three months before.

     Following are key points from the latest monthly Economy Watchers' Survey,

conducted by the Cabinet Office between Oct. 25 and Oct. 31.

     --The Economy Watchers' sentiment index for Japan's current economic

climate rose 0.9 points to 49.5 in October on a seasonally-adjusted basis, the

first rise in two months after falling 0.1 point to 48.6 in September. The index

stayed below the key level of 50 for a ninth consecutive month.

     --The Watchers' outlook index showed sentiment over the situation two to

three months ahead dropped for a second straight month, down 0.7 point to 50.6,

as the rise in gasoline prices and uncertainty over global trade disputes fed

caution. The index fell 0.7 point to 50.6 in October.

     --The Cabinet Office left its overall economic assessment based on the

Economy Watchers' Survey unchanged, saying, "The gradual recovery continues."

     --"Looking ahead, there are concerns over high costs and the impact of the

trade dispute. But there are expectations for end-year sales," the Cabinet

Office said.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; +44208-865-3829; email: Jason.Webb@marketnews.com

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