Japan's economic sentiment declines in April

TOKYO, May 12 (Xinhua) -- A survey released Monday by Japan's Cabinet Office showed both the current economic conditions index and the outlook index declined in April, as rising prices and uncertainty over U.S. tariff policies weighed on sentiment.

The index, which assesses economic sentiment based on opinions from people working in various industries, is a leading indicator of economic trends in Japan.

The current conditions index dropped to 42.6 in April, down 2.5 points from March, marking the fourth consecutive monthly decline. While some respondents noted steady inbound tourism, many expressed concerns over inflation and the potential impacts of U.S. trade policy.

A steel industry representative from the Tokai region noted that uncertainty surrounding U.S. auto tariffs is causing businesses to hold back on capital investment.

Based on the findings, the Cabinet Office downgraded its assessment of the current economic situation, saying that the recovery has recently shown signs of weakening.

The outlook index, which gauges expectations for the coming months, also declined for the fifth straight month. Although there are hopes for wage increases, ongoing inflation and the unclear future of U.S. tariff measures are contributing to economic uncertainty, the survey showed. Enditem