MNI BRIEF: Japan Jan Sentiment Rises; Outlook Indexes Drop
MNI (TOKYO) - Japan's sentiment index for the current economic climate stood at a seasonally adjusted 48.6 in January, down from 49.0 in December, its first drop in three months, while the outlook index for two-three months ahead fell 1.4 points to 48 for the second straight drop, the Economy Watchers report released by the Cabinet Office showed Monday.
The indexes linked to households and labour market conditions fell, while the index linked to business rose.
“The economy is recovering moderately as a trend. Looking ahead, a moderate economic recovery is likely to continue but there is concern over the impact of high prices,” the government repeated.
While the data will increase concern over the outlook for private consumption on the back of continued high prices, Bank of Japan officials do not expect private consumption to derail from a moderate recovery trend due to improving income conditions.