Pessimism Grows for 6th Straight Month about Japan’s Economy

Pessimism about Japan's economy grew for the 6th straight month among

1. waiters

2. convenience store operators

3. other front line workers

in Japan.

Japan's longer than usual summer has caused consumer spending to cool off.

The main index of the Cabinet Office's Economy Watchers Survey is a gauge of the mood of ordinary workers in Japan who observe economic developments

firsthand…what a novel idea.

Asking the people … not the numbers.

50 is the boom-or-bust number.

In Septemeber the number hit 42.9 on the bust side, the lowest number since June 2003.

The question -  are business conditions better or worse than they were three months earlier and do you think they will improve in the next two to three months?

Household spending index dropped 2 points.

Corporate index was up 0.4 points

Employment index was up 0.5 points.

The Economy Watchers Survey is considered a reliable indicator of consumer spending…

For 6 months now, things have been looking gloomier and gloomier.

And for the first time in six months it rained today here in Sunnyvale, CA.

What do you think is the best indicator of economic outlook?