Japan's service sector mood jumps in June as lockdowns ease

Japan’s service sector sentiment jumped at a record pace in June as businesses re-opened after lockdown measures were lifted in late May, data showed on Wednesday, offering hope that the economy’s coronavirus-induced slump has bottomed out. But a recent rise in new infections in Tokyo is clouding the outlook, leaving few analysts predicting a V-shaped recovery. “Japan’s economy will hopefully pick up as business re-opens and the effect of government stimulus measures appears,” said Takeshi Okuwaki, economist at Dai-ichi Life Research Institute. “But it will take some time for economic activity to return to pre-pandemic levels. The outlook remains severe,” he said. A government survey of workers such as taxi drivers, hotel workers and restaurant staff - called “economy watchers” for their proximity to consumer and retail trends - showed their confidence about current economic conditions jumped a record 23.3 points to 38.8 in June from the previous month.