MNI BRIEF: Japan Feb Sentiment Drops, Govt Cuts View
MNI (TOKYO) - Japan's sentiment index for the current economic climate stood at a seasonally adjusted 45.6 in February, down from 48.6 in January, the second consecutive month of decline, while the outlook index for two-three months ahead fell 1.4 points to 46.6 in February from 48.0 in January for the third straight drop, the Economy Watchers report released by the Cabinet Office showed Monday.
The indexes linked to the households and businesses fell but the index linked to the labour market rose.
The economy is experiencing a moderate recovery, "though signs of weakness persist." Looking ahead, the gradual economic rebound is expected to continue, albeit with concerns over high prices, the government stated.
A Cabinet Office official told reporters that high prices and costs had impacted sentiment, with heavy snow in February and consumer savings also contributing.
The data raised concerns about the outlook for private consumption, driven by persistently high prices. Bank of Japan officials are closely monitoring whether the weakened sentiment will lead to an actual decline in spending.