Japan February Economy Watcher’s Index

March 11, 2007
By Ken Worsley

The Cabinet Office released their Economy Watcher’s Index for February on Wednesday, March 7. This index measures the perception of workers with jobs sensitive to economic trends, and in February showed an increase for the first time in five months, by 2.0 points to 49.2. A score above 50 indicates that most respondents believe that the economy is improving.

Specifically, the report looks at workers such as taxi and truck drivers, department store sales staff, and restaurant and shop owners, and asks them if they think that economic conditions were better or worse than they were three months before.

It is telling that despite the longest post-war economic expansion, such a large portion of Japan’s workers remain less than fully optimistic about the state of the economy. Naturally, many of them must be reporting on their own conditions, and since they are not typically the beneficiaries of capital investment, it seems logical that the index remains under 50.

The question remains: when will the economic recovery begin to show in the wallets of such workers? This observer thinks the question might be better served with an ‘if’ than a ‘when,’ but hopes not, and readily admits that only time can tell.

Filed Under Cabinet Office, Economic Reports