Article:
TOKYO (Kyodo) -- Business sentiment among workers in Japan with jobs sensitive to economic trends in July almost returned to levels seen before the coronavirus outbreak, as social and economic activities gradually resumed, government data showed Tuesday.
The diffusion index of confidence among "economy watchers" such as taxi drivers and restaurant staff, released by the Cabinet Office, rose 2.3 points from June to 41.1, compared with 41.9 logged in January when the fallout from the virus outbreak in China was yet to be felt in Japan.
The reading in the reporting month increased for the third consecutive month after a record-low figure of 7.9 was marked in April, when a nationwide state of emergency was declared to prevent the virus spread, dealing a heavy blow to the world's third-largest economy.
Ideas:
Business sentiment, or how someone feels, is a very subjective measure as it can never be exactly sure how a group feels really means anything when it comes to business activity.
What exactly is an "economy watcher?" Most likely its that group as the above says is dependent on good economic or business conditions to remain employed.
How would taxi drivers be economy watchers? Perhaps if the economy is doing well more people might inclined to take taxis instead of a lower cost bus or subway/train. Or if economy is not doing too good consumers of transportation might just take the cheaper bus and or subway/train.
Of course restaurant staff are always dependent on a good economy. If the economy and businesses are doing good, then more consumers are most likely going to be visiting restaurants instead of eating at home, as is now the case.
Article:
As for the outlook, however, the economy watchers expressed a pessimistic view, with the diffusion index gauging business sentiment regarding the coming months decreasing 8.0 points to 36.0.
A government official told reporters that the outlook figure, down for the first time in three months, is believed to reflect a recent resurgence in infections seen across the country.
"We can see indications of a pickup from the outcome as economic activities have been partially lifted by the government's support measures such as cash handouts and a subsidy campaign for tourists, while negative effects of the resurgence in virus cases appeared in the latter half of the month," the official said.
Ideas:
With all the news out there now about the pandemic is very difficult for many business or economy watchers to be positive. If your business is a customer service type business and you and your employees depend on customers to grow and now even survive, its not easy to be positive.
Business now have find a way to survive, through innovation, new market niches, maybe somewhat lowered expectations in order to keep the business open. Now might be a good time to find ways to do business that was not thought of before.
For example how many restaurants before the pandemic had takeout or delivery, and or partnering with a online company or service that can provide online help that maybe a small and medium sized business is unable or unwilling to do.
Finding new blue oceans in a pessimistic atmosphere is not easy but needed to survive.
Article:
In May, the government began delivering 100,000 yen ($942) each to 126 million residents in Japan and launched a subsidy campaign called "Go To Travel" in late July to boost the virus-hit domestic tourism industry.
But the travel promotion policy has drawn fire from the start amid concerns that it could further spread the virus infection.
A reading below 50 indicates that more respondents reported worsening conditions than improving ones.
The index on current conditions in June had logged the largest month-to-month rise of 23.3 points since comparable data became available in January 2002.
Ideas:
No doubt the 100,000 yen is and was needed by many. But how many families can survive on that amount. Its a worthy goal to help those in need, but most likely families and others will need more than that if the pandemic continues on.
The travel promotion may have been another worthwhile goal to get the economy and businesses moving again. But rightly so it could spread the virus to areas that haven't seen as many viruses and other areas.
The virus situation has hit many businesses and as such its should be understood, just because there is a month or two of positive activities is not going to undo all of the damage that took place in the spring.
An economy is a very complex web of activities but at the same time it is very interconnected in that while there might be one or two industries or sectors that seem OK and not really that affected you will have double that amount that are very affected by the pandemic and then add in what is called the multiplier affect and you can double that amount because of the web of connections in the economy.
But the same can be said the opposite direction, to add in some positive ideas. If the economy begins to sustain itself eventually there might be this connection where some businesses start to really improve and then it adds on other connected business es that begin to pull out of the pandemic situation and begin to see real growth again.
Article:
The Cabinet Office maintained its assessment after upgrading it for the second straight month in June, saying that while economic conditions remain severe due to the coronavirus pandemic, there are signs things are picking up.
A department store worker in the southwestern region of Kyushu was quoted as saying that sales were gradually recovering as customers increased from the previous month, but the number of elderly people visiting the store remained at a low level.
A fabricated-metal industry worker in the Kinki region in western Japan welcomed the fact that more auto plants were resuming operations, but said it would take time for related sectors to go above a profitable line of business.
The Cabinet Office polled 2,050 workers from July 25 to 31, of whom 1,845, or 90.0 percent, responded.
Ideas:
Just as the department store worker said there appears to be a gradual recovery with more customers. Again as more customers begin to show up then more customers will begin the venture out and start shopping again.
And of course the idea that some customers might have migrated to online shopping when there weren't shopping online before.
And then there is the elderly customers. Some estimates say the elderly are the backbone of the department store industry. The elderly of course are probably hesitant to go out at this time.
Then there is the auto industry and its related sectors ad the metal worker describes. Again the interconnections of different industries or parts of industries. As one part begins to improve it might lead to the improvement of other parts of connections in industries and the overall economy.
Have a nice day and be safe!
