MNI DATA IMPACT: Japan July Sentiment Rises As Services Rally

Japan's current sentiment index rose for a third straight month in July, boosted by a pick-up in indexes linked to services and housing, a key government survey released Tuesday showed.

The 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 over the last three months.

The survey, conducted by the Cabinet Office between July 25 and July 31, saw the Economy Watchers sentiment index for Japan's current economic climate rise 2.3 points to 41.1 in July on a seasonally adjusted basis, after rising 23.3 points to 38.8 in June.

The July Watchers outlook index for two to three months ahead showed a first drop in three months, down 8.0 points to 36.0 after rising 7.5 points to 44.0 in June, underlining the unease in the consumer market.

Restaurants and retailers were among the hardest-hit businesses in the poll, which targeted roughly 2,000 people, including store managers and taxi drivers.

The Cabinet Office lowered its overall economic assessment based on the Economy Watchers Survey, saying, "Severity caused by the coronavirus continues but sentiment showed a sign of recovering. Looking ahead, concern over developments of infectious disease is strengthening." In June, the government said, "there is concern over development of infectious disease but improvement is likely to continue."