MNI DATA IMPACT: Japan Dec Sentiment Indicator Up On Retail

--Japan Dec Econ Watchers Current Index 39.8; Nov 39.4 

--Japan Dec Watchers Outlook Index 45.4; Nov 45.7 

--Japan Govt Keeps View: Weakness seen in recovery

     TOKYO (MNI) - Japan's current sentiment index posted a second straight rise

in December, boosted by item linked to retail sales, although items linked to

drinking/eating services fell, a key government survey released Tuesday 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 December 25 and December 31.

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

rose 0.4 points to 39.8 in December on a seasonally adjusted basis, after

rising 2.7 points to 39.4 in November. 

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

first drop in three months in December, down 0.3 points to 45.4 after rising 2.0

points to 45.7 in November, on the outlook for drinking/eating as well as

services. 

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

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

     --"The impact of the post-tax hike was observed. Looking ahead, there are

concerns over the outlook for overseas economies but hope for an economic

recovery is also seen," the Cabinet Office 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: MAJDS$,M$A$$$,M$J$$$]