MNI BRIEF: Japan August Sentiment, Outlook Indexes Rise

MNI (TOKYO) - Japan's sentiment and outlook indexes ahead both posted their third straight rise in August, supporting the view that consumer sentiment remained solid on the back of improving income conditions, the Economy Watchers report released by the Cabinet Office showed Monday.

The Economy Watchers sentiment index stood at a seasonally adjusted 49.0 in August, up from 47.5 in July, while the outlook index for two to three months ahead rose 2.0 points to 50.3 in August from 48.3 in July. All indexes rose from the previous month.

Wage hikes and solid inbound tourists contributed to the improved sentiment, an official at the Cabinet Office told reporters, noting corporate pass-through of cost increases was advancing smoothly. (See MNI POLICY: BOJ Confidence Grows As Focus Shifts To December) 

The indexes linked to the households and labor market rose but the index linked to businesses fell.

The government upgraded its assessment, saying, “the economy is recovering moderately as a trend. Looking ahead, a moderate economic recovery is likely to continue, although there is concern over the impact of high prices.”