Japan's economy watchers survey falls sharply in July as impact of higher prices starts to bite.
Japanese economic sentiment for both current and 2/3 month ahead outlooks posted declines for the second straight month in July, with the government also lowering its assessment from June, the Economy Watchers survey released by the Cabinet Office Monday showed. The Economy Watchers sentiment index for the current economic climate fell a seasonally adjusted 9.1 points to 43.8 in July from 52.9 in June, while the outlook for two to three months ahead fell 4.8 points to 42.8 from 47.6.
An official at the Cabinet Office said that the index is more affected by high costs than Covid-19. The government said “The economic recovery is marking time. Looking ahead, there is hope for a recovery but there is concern over higher prices,” but deleted any reference to “the impact of Ukraine’s situation” from the assessment.
The survey 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. It was conducted by the Cabinet Office between July 25 and July 31 when Covid infections has fallen sharply and targeted roughly 2,000 people, including store managers and taxi drivers.