Japan’s Economy Watcher Index Slips in October; Outlook Fades

Summary

• Japan's economy watcher index slipped to 46.1 in October from 47.0 in September.
• Five of the nine index components were weaker in October, while assessments for eating and drinking places, corporations, and nonmanufacturers improved.
• Nonmanufacturers showed substantial improvement from September to October.
• The 12-month change shows a decline of 2.1 points for the headline index and for all components except eating and drinking places.
• The headline index holds a 41.9 percentile standing, which is below its historic median.
• Four components have readings above the 50th percentile: eating and drinking places at 77.9, services at 63.6, nonmanufacturers at 59.7, and corporations at 51.4.
• The future economy watcher index slipped to 46.5 in October from 47.4 in September.
• Three of the nine future index components improved in October: eating and drinking places, services, and manufacturers.
• The three-month change in the future index increased by 0.7 points.
• The six-month change in the future index increased by 7.1 points.
• The year-over-year change for the future index is lower by 5.7 points.
• Over three months, the future index shows deterioration in retailing and employment while seven other components improved.
• Over six months, all sectors in the future index improved, with retailing showing the smallest gain of 4.9 points and manufacturers showing the largest gain of 10.6 points.
• The future index headline has a 37.5 percentile standing, which is below the 50-percentile mark.
• All components of the future index except one post standings below the 50-percentile mark.
• Both the current and future indexes are lower year-on-year but are creeping higher over three-month and six-month periods.