MNI BRIEF: Japan Oct Sentiment Posts 6th Straight Rise

Japan’s Economy Watchers sentiment index rose for a sixth consecutive month in October, prompting the government to upgrade its assessment from the previous month, data released by the Cabinet Office on Tuesday showed.

The index for the current economic climate stood at a seasonally adjusted 49.1 in October, up from 47.1 in September, while the outlook index for two to three months ahead climbed 4.6 points to 53.1 from 48.5.

The outlook index also posted a sixth straight month.  Sentiment improved across households, businesses, and the labour market.

“The economy is recovering. Looking ahead, while there are concerns over rising prices, the recovery is likely to continue,” the government said, revising its previous view that the economy “showed signs of recovering” and had been affected by U.S. trade policy.

A Cabinet Office official told reporters that concerns over the impact of U.S. trade policy remain given the uncertain outlook.

The stronger data helped ease some Bank of Japan concerns that private consumption may lose momentum as households struggle with high living costs, though the survey does not directly measure consumption.