Japanese Business Confidence Worsens in November

Business confidence among Japanese workers with jobs sensitive to economic conditions worsened in November for the second straight month, with the April 1 consumption tax hike and a weaker yen hurting domestic demand, the government said Monday.

The diffusion index of sentiment over the nation’s current economic situation among so-called “economy watchers,” such as taxi drivers and restaurant employees, was down 2.5 points from the previous month to 41.5, the Cabinet Office said.

As the index fell below the threshold line of 50 for the fourth consecutive month, the government downgraded its basic assessment of the monthly survey for the second month.

The economy watchers suggest the country’s economic recovery “has shown some weakness recently,” the office said, deleting the phrase the economy “is continuing to recover at a moderate pace.”

“Concerns over price rises are seen,” it added.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza