Japan Economy Watcher Sentiment Posts 1st Fall in 7 Months

Tokyo, Dec. 8 (Jiji Press)–Sentiment among so-called economy watchers in Japan dropped for the first time in seven months in November, a Cabinet Office survey showed Monday. The seasonally adjusted diffusion index for economy watchers’ current sentiment fell 0.4 point from the previous month to 48.7. Economy watchers are people working in industries sensitive to changes in economic trends, including taxi drivers. All three underlying indexes–on household activities, corporate activities and the employment situation–ceded ground, by 0.2 point, 1.2 points and 0.5 point, respectively. Weighing on sentiment were rising consumer prices. Also, an official at a hotel in the Tohoku northeastern region said, “We have received many inquiries about bear sightings, and some of our reservations have been canceled.” The economic watchers’ outlook DI for economic conditions two or three months ahead also dropped, by 2.8 points to 50.3. The tourism industry is worried about a possible decrease in Chinese visitors after China’s government advised its people to refrain from visiting Japan following Japanese Prime Minister Sanae Takaichi’s parliamentary remarks last month over a potential Taiwan contingency. An official at a shopping center in the Kyushu southwestern region indicated that an expected fall in Chinese people’s demand for travel to Japan would have a negative impact on earnings. END [Copyright The Jiji Press, Ltd.]