A measure of people's assessment of the Japanese economy improved in December after worsening in the previous two months, survey figures from the Cabinet Office showed Tuesday.
The current index of the economy watchers survey rose by 3.7 points to 45.2 in December from 41.5 in November. Economists had forecast the index to rise to 44.0.
A reading above 50 suggests optimism and a score below 50 indicates pessimism. The latest increase was the first in three months.
Meanwhile, the outlook index climbed to 46.7 in December from 44.0 in the prior month. It was the highest score since September, when it was at 48.7.
Marcel Thieliant, a Japan economist at Capital Economics noted that the strong rebound in the Economy Watchers Survey in December stands in stark contrast with other business surveys which mostly weakened last month.
The economist said he would place more weight on small business confidence and the PMIs, which on balance worsened at the end of last year and remain consistent with falling industrial output.
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