June 29, 2022

The Japan cabinet office reports the country’s business sentiment among workers rise to the highest level in November. Such a rise has been attributed to confidence among eateries climbed to a record high after the latest coronavirus state of emergency was lifted.

According to the Cabinet Office, the diffusion index of confidence in current conditions when compared with three months earlier among taxi drivers, restaurant staff and other economy watchers, edged up 0.8 point in November to 56.3, from October.

The reporting month’s reading rose with a gain of 13.4 points in the previous month.

The Cabinet office reported that it had polled some 2,050 workers from Nov. 25 to 30 to collect the data, of whom 1,828, or 89.2 percent, responded.

Business sentiment summary –

• In the reporting month, the sentiment among eateries improved with the diffusion index hitting 68.2, up 3.1 points, for the third month in a row. Thus marking the highest level since comparable data became available in 2002.
• For the first time in three months, in November, the confidence among retailers fell 0.4 point to 53.7, down. This can be attributed towards people apparently going out to eat rather than shop in supermarkets and cook at home.
• However, the diffusion index gauging business sentiment in the coming months fell 4.1 points to 53.4 from the previous month. The recording amount has been down for the first time in three months.

According to a shopping mall staffer in the Hokuriku region in central Japan mentioned that, sales of clothing are have been growing as opportunities for going out and participating in events are increasing, along with customers returning to restaurants.

Among optimistic workers, in the Shikoku region in western Japan, a travel agency worker commented that after the removal of the state of emergency new bookings were steadily increasing.

However, some workers have been wary of recent uncertainties about the Omicron coronavirus variant and rise in raw material costs.

Another clothing store worker cautioned that with the signs of new coronavirus variant spreading many may have a bleak business prospects as they expect price hikes for foodstuffs, gas and electricity rates to dampen the economy.