Workers in Japan are again seeing rising sales after a tax hike in April

Business sentiment up again
Date: Jul 8, 2014
Source: NHK World

Workers in Japan are again seeing rising sales after a tax hike in April. Business sentiment in the country improved in June for a second straight month.

Each month, Cabinet Office officials survey more than 2,000 people mainly in the service sector about their confidence regarding current economic conditions.

The sentiment index in June rose 2.6 points from the previous month, to 47.7.

Workers in wide-ranging areas including supermarkets, electric appliance shops and car dealerships said sales were recovering from a post-tax hike slump.

But rising gasoline prices cast a shadow on the outlook for a few months from now. The index for that period fell 0.5 points, to 53.3. It declined for the first time in three months.

Cabinet office officials brushed aside the decrease as minor, and revised their assessment upward. They said the impact of the tax hike is fading and that Japan’s economy remains on a mild recovery path.