MNI BRIEF: Japan Jan Sentiment Index Drops; Outlook Index Rises

Japan's sentiment index in January posted the first drop in three months, falling 1.6 to a seasonally adjusted 50.2, but the outlook index for two-three months ahead posted its first straight rise, helping the government maintain its assessment, the the Cabinet Office's Economy Watchers report showed on Thursday.

The indexes linked to households hit by price rises and businesses fell but those tracking the labour market rose. The sentiment index indicated near-future weaker spending, but anxiety was somewhat eased by a better outlook index. The outlook index for two to three months ahead rose 2.1 points to 52.5 in January from 50.4 in December.

“The economy is recovering moderately as a trend but it is marking time. Looking ahead, a moderate economic recovery is likely to continue, although there is concern over the impact of high prices,” the government said.