MNI BRIEF: Japan's Sept Sentiment, Outlook Indexes Fall
MNI (TOKYO) - Japan's sentiment and outlook indexes for two to three months ahead posted their first drop in four months in September, temporarily increasing concern over the outlook for spending, the Economy Watchers report released by the Cabinet Office showed Tuesday.
The Economy Watchers sentiment index for the current economic climate stood at a seasonally adjusted 47.8 in September, down from 49.0 in August, while the outlook index fell 0.6 points to 49.7.
An official at the Cabinet Office told reporters that consumer spending is slowing due to ongoing price hikes and concerns over further inflation in October when firms plan to raise retail prices.
Meanwhile, some households believe the weaker yen will help restrict price hikes, the report noted.
The government left its assessment, saying “the economy is recovering moderately as a trend. Looking ahead, a moderate economic recovery is likely to continue, although there is concern over the impact of high prices.”