Japan Eco Watchers Index Falls Unexpectedly, Outlook Fades

(RTTNews) - A measure of the public assessment of the current situation of the Japanese economy weakened unexpectedly at the start of the year, and future conditions also remained pessimistic, survey data from the Cabinet Office showed on Monday.

The current conditions index of the Economy Watchers' Survey, which measures the present situation of the economy, dropped to 48.6 in January from 49.0 in December. Meanwhile, economists had forecast the index to rise to 49.7.

Any score below 50 indicates pessimism, while a reading above 50 indicates optimism.

The increase in the index was driven by decreases in household activity-related measures, especially in the food and beverage segment and housing.

The outlook index that signals future activity decreased to 48.0 from 49.4 in the previous month, as both household and corporate activity related conditions worsened.