MNI DATA IMPACT: Japan May Sentiment Rises On Services Pick Up

--Japan May Econ Watchers Current Index 15.5; April 7.9 

--Japan May Watchers Outlook Index 36.5; April 16.6 

--Japan Govt Ups View: Stops Worsening; Recover Expected

     TOKYO (MNI) - Japan's current sentiment index rose for the first time in

four months in May, helped by a modest pick-up in eating and drinking services,

retail sales and general services, although the overall reading remains at very

depressed levels a key government survey released Monday 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.

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

by the Cabinet Office between May 25, when the government lifted the state of

emergency, and May 31.

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

rose 7.6 points to 15.5 in May a seasonally adjusted basis, after falling 6.3

points to 7.9 in April.

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

first rise in six months, up 19.9 points to 36.5 after falling 2.2 points to

16.6 in April.

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

Economy Watchers Survey, saying, "Conditions remained severe due to the impact

of the coronavirus but seemed to stop worsening. Looking ahead, the severity

will likely continue but there is expectation of recovery."

--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

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