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ECONOMY > Economic Indicators

Japan economy watchers sentiment keeps falling

  • June 8, 2021
  • , Jiji Press , 8:09 p.m.
  • English Press

Tokyo, June 8 (Jiji Press)–Sentiment among so-called economic watchers in Japan kept falling in May as more prefectures were placed under the country’s third coronavirus state of emergency, government data showed Tuesday.

The seasonally adjusted diffusion index on their sentiment about current economic conditions compared with three months before dropped 1.0 point from the previous month to 38.1, according to a Cabinet Office survey.

Summing up the results of the survey, the government agency said that weakness is seen in the economic recovery.

But the agency also said there is expectation that coronavirus vaccinations and other factors will support the recovery although concerns over the infection situation will remain.

The survey was conducted May 25-31 after the coverage of the coronavirus emergency expanded to 10 prefectures from four, including Tokyo, in April, when the emergency declaration was made.

In the May survey, the DI for households dropped 1.9 points, and that for restaurants dived 4.4 points.

“Providing alcoholic drinks is banned under the declaration, and the hellish situation is continuing,” said the operator of an “izakaya” Japanese-style pub in Okinawa Prefecture, southernmost Japan.

The outlook DI for economic conditions two to three months ahead grew 5.9 points to 47.6, improving for the first time in three months.

“We will definitely see a recovery in summer if vaccinations progress and the Tokyo Olympics are held,” a hotel operator in the southern part of the Kanto eastern region said.

On the other hand, a convenience store operator in Hokkaido, northernmost Japan, voiced anxiety, saying, “Uncertainty will remain until the state of emergency is lifted.”

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