MNI BRIEF: Japan Nov Sentiments Post 1st Drop In 7 Months

Japan’s Economy Watchers sentiment index fell for the first time in seven months in November, with the outlook index for two to three months ahead also posting its first decline in seven months, although the government kept its overall assessment unchanged, data from the Cabinet Office showed Monday.

Indexes covering households, the labour market and businesses all weakened. The current conditions index declined to a seasonally adjusted 48.7 in November from 49.1 in October, while the outlook index dropped 2.8 points to 50.3 from 53.1.

The government said the economy is recovering and, despite concerns over rising prices, the recovery is likely to continue.

A Cabinet Office official told reporters that higher material costs due to the weak yen were weighing on corporate sentiment, while households continued to face elevated living costs. He added that comments expressing concern about the future impact of the weak yen were increasing.