- Koichi Fujishiro, an economist at Dai-ichi Life Research Institute
April's sales tax increase continues weighing on consumer sentiment in Japan, as Cabinet Office survey revealed confidence among households fell for a fourth consecutive month in November. The sentiment index, which includes views on jobs and incomes, came in at 37.7, the lowest level since April and down from 38.9 in October. The index measuring employment levels declined by 1.9 points to 42.8 in November and the "willingness to buy durable goods" index fell 1.1 points to 35.4.
Separately, business activity of Japan's large-scale manufacturers declined in the final quarter of the year, indicating a subdued output and highlighting the need of extra stimulus to support the recession-struck economy. The Business Survey Index of large-scale manufacturers plummeted to 8.1 in the three months through December down from 12.7 in the previous quarter, with a figure above zero indicating optimism, while a figure under zero shows pessimism. Manufacturers saw domestic economic conditions worsening in the December quarter, with the sub index falling from 16.7 to 5.0, while employment rose, with the corresponding sub index picking up from 2.9 to 4.6. The manufacturing gauge followed data that confirmed Japan's economic recession, with revised GDP showing the economy shrank an annualized 1.9% in the third quarter, the second straight quarter of negative growth.
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