Japan's Cabinet Office reported on Monday that its Economy Watchers
Survey revealed that an assessment of the current economic conditions unexpectedly
deteriorated in June.
According to the survey, the Economy Watchers’ index for current
conditions decreased 1.4 points to 53.6 last month (on a seasonally adjusted
basis). That was the lowest reading in three months and marked the first decline
in the indicator since January. Economists had predicted the index to stay
unchanged at 55.0. Any reading above 50 indicates optimism and a reading below 50
suggests pessimism.
Assessments worsened all 3
components of the headline index. The employment measure plunged 3.0 points to
54.1 in June, while the gauge of household activity fell 1.3 points to 53.6, and
the corporate activity indicator dropped 1.0 points to 53.3.
Meanwhile, the Economy Watchers’ outlook index, an assessment of future
economic conditions, declined 1.6 points to 52.8 in June. That was the lowest
reading since February (50.8). The June fall in the headline index reflected decreases
in all its components - the employment (-3.9 points to 54.3 in June), the household
activity (-1.7 points to 52.4), and corporate activity (-0.3 points to 53.3) indexes.