Japan’s Merchants in Most Bullish Mood Since Early 2014

(Bloomberg) -- Japan’s merchants turned optimistic in October as returning economic activity helped drive sentiment up to its highest in almost seven years despite the lingering pandemic.

A gauge of current mood among store managers, taxi drivers and others who deal directly with consumers rose to 54.5, the highest since January 2014, the Cabinet Office’s Economy Watchers survey showed Tuesday.

The index has climbed for six straight months after bottoming in April, during the worst of the virus shutdowns. It rose above the 50 threshold for the first time since January 2018, indicating that optimists now outnumber pessimists.

A separate index measuring the outlook also increased to 49.1, the highest since November 2018, though still indicating continued pessimism.

The economy is expected to rebound in the third quarter, after contracting a record 28.1% in April-June, helped by government stimulus measures including cash handouts and travel subsidies.

Japan’s Suga Orders Third Extra Budget as Virus Impact Drags

Earlier today, Prime Minister Yoshihide Suga ordered the putting together of a third additional budget to further support growth.

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