–Japan Apr Economy Watchers S/A Current Index 48.1 Vs Mar 47.4
–Japan Apr Watchers Current Index Posts 1st Rise in 5 Months
–Japan Apr Watchers S/A Outlook Index 48.8 Vs Mar 48.1
–Japan Apr Watchers Outlook Index Posts 1st Rise in 2 Months
–Japan Govt Repeats: Econ Pickup Continues But Taking A Breather
TOKYO (MNI) – Results of the Cabinet Office’s monthly Economy Watchers Survey conducted between April 25 and April 30 were released Thursday.
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 from three months before.
* The Economy Watchers sentiment index for Japan’s current economic climate posted the first rise in five months, rising 0.7 point to 48.1 in April after falling 1.2 points to 47.4 in March on a seasonally adjusted basis. Both department store sales and business investment were solid while new car sales were sluggish as tougher standards for tax exemptions and credits for low-emission vehicles took effect on April 1.
* “The yen appreciated in the middle of April (to around Y108 against the dollar) but stabilized at around Y111 at the end of the month during the survey period, which was little changed from the end of March,” Cabinet Office director of regional economies Masahiko Tsutsumi told reporters. “The small number of Watchers’ comments on the appreciation of the yen showed there was no particular concern.” The outlook for the effect of the yen’s rise was also neutral, he said.
* The Economy Watcher outlook index showed sentiment over the next two to three months also rebounded in April, up 0.7 point at 48.8, the first rise in two months after slumping 2.5 points in March. Many respondents are counting on households to spend summer bonuses, although the pace of increase in bonuses may be slower than last year, Tsutsumi said. Car dealers expect higher sales in the summer from the effects of bonuses and new models for the season.
* But labor shortages continue to undermine economic activity as some firms find it hard to pass along higher labor and material costs while others cannot secure necessary workers, leading to a lower operation ratio as seen at taxi companies, Tsutsumi said.
* The Cabinet Office maintained its overall economic assessment based on the survey, saying, “The pickup continues but it also continues to take a breather.”
* “Looking ahead, there are expectations for continued orders and business investment, although there are concerns over labor shortages and higher costs,” the government said.
–MNI Tokyo Bureau; tel: +81 90-4670-5309; email: [email protected]
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THURSDAY, MAY 11, 2017 – 02:08
Source: MNI