MNI DATA IMPACT: Japan Aug Sentiment Up On Retail, Services

--Japan Aug Econ Watchers Current Index 42.8; July 41.2 

--Japan Aug Watchers Current Index Posts 1st Rise in 4 Months 

--Japan Aug Watchers Outlook Index 39.7; July 44.3 

--Japan Aug Watchers Outlook Index Posts 2nd Straight Drop 

--Japan Govt Lowers View: Weakness seen in recovery

     TOKYO (MNI) - Japan's current sentiment index posted the first rise in four

months in August, helped by favorable items linked to retail sales and services,

a key government survey released Monday showed.

     The monthly survey indicates whether respondents with jobs most sensitive

to economic conditions -- taxi and truck drivers, department-store sales staff

and restaurant and shop owners -- think economic conditions have improved or

worsened from the three months prior.

     These are the key points from the latest Economy Watchers Survey, conducted

by the Cabinet Office between August 25 and August 31.

     --The Economy Watchers sentiment index for Japan's current economic climate

rose 1.6 points to 42.8 in August on a seasonally adjusted basis, after falling

2.8 points to 41.2 in July, which was the lowest level since April 2016 when it

was also at 41.2.

     --The Watchers outlook index for two to three months ahead showed a marked

drop, down 4.6 points to 39.7 on the back of weaker outlook for services and

retail sales ahead of the consumption tax hike to 10% from 8% on Oct. 1.

     --The Cabinet Office left its overall economic assessment based on the

Economy Watchers Survey, saying, "weakness is seen in the recovery." The

government last month downgraded its assessment for the first time in four

months.

     --"Looking ahead, there are concerns of uncertainty over the global economy

and the consumption tax hike (to 10% from 8% on Oct. 1)," the government said.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$A$$$,M$J$$$]