MNI BRIEF: Japan December Sentiment Dips But Outlook Improves

Japan's sentiment index fell for a second straight month in December, but the outlook index for two to three months ahead rose for the first time in four, , according to the Economy Watchers released by the Cabinet Office Thursday showed, prompting the government to keep its assessment unchanged.

The government said, “The economy showed sign of recovering. Looking ahead, there is hope for a recovery but there are concerns over the impact of high prices.” The rise in the outlook index supported the Bank of Japan view that private consumption will remain solid, despite the rise in consumer prices.

Economy Watchers sentiment index for the current economic climate fell a seasonally adjusted 0.2 points to 47.9 in December from 48.1 in November. The outlook index for two to three months ahead rose 1.9 points to 47.0 in December from 45.1 in November. The survey, conducted between Dec 25 and Dec 31, indicates whether respondents with jobs most sensitive to economic conditions, including taxi and truck drivers, department-store sales staff and restaurant and shop owners, think economic conditions have improved or worsened over the last three months.