MNI DATA BRIEF: Pandemic Drives Japan Sentiment Outlook Lower

Japan's sentiment index posted the first drop in three months for two-to-three month ahead as pandemic uncertainty continues even as it rose for the second straight month in July as major components improved, the Economy Watchers report released by the Cabinet Office Tuesday showed.

The outlook index for two to three months ahead fell 4.0 points to 48.4 from 52.4 in June, and the sentiment index for the current economic climate rose a seasonally adjusted 0.8 points to 48.4 in July from 47.6 in June.

"The situation remained severe, but the economy is recovering. Looking ahead, there is concern over infections but there is hope for an economy to continue to recover due to vaccinations," a Cabinet Office official told reporters.

The survey, conducted from July 25-30, 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.