MNI BRIEF: Japan's Oct Economic Sentiment Rises, Outlook Falls

The Japanese government's sentiment index posted the third straight rise in October but the outlook index for two to three months ahead posted the second consecutive drop, prompting the government to tweak its assessment from the previous month, the Economy Watchers released by the Cabinet Office on Wednesday showed.

The Economy Watchers sentiment index for the current economic climate rose a seasonally adjusted 1.5 points to 49.9 in October from 48.4 in September.

“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 government said. The government previously said there was "hope for recovery". (See MNI BOJ WATCH: Closer To 2% Target, But Easy Policy Remains)

The outlook index for two to three months ahead fell 2.8 points to 46.4 in October from 49.2 in September. The data prompted Bank of Japan officials to sharpen their focus on how private consumption will evolve amid concerns over high living costs.

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 October 25 and October 30 when the number of infections has fallen sharply and targeted roughly 2,000 people, including store managers and taxi drivers.