TOKYO, March 11 (Xinhua) -- A survey released Monday by Japan's Cabinet Office showed the current economic conditions index fell 3.0 points from the previous month to 45.6 in February, marking the second straight month of decline.
The index, which assesses economic sentiment based on opinions from people working in various industries, is a leading indicator of economic trends in Japan.
A reading above 50 indicates economic improvement, while below 50 suggests worsening conditions.
February's drop was largely attributed to colder-than-usual weather, which discouraged consumer outings and dampened retail sales.
Given the data, the government downgraded its overall economic assessment for the first time in 10 months, stating that while the economy remains on a moderate recovery trend, signs of weakness have emerged.
Among the components of the current conditions index, both household and corporate activity declined. The household-related index fell 4.1 points to 44.5, driven by a 4.8-point drop in the retail sector.
The prolonged cold weather discouraged customers from going out, leading to a drop in traffic and sales, reported a department store in the Tokai region.
The business activity index also fell by 1.5 points to 47.4 as weak consumer spending due to the weak yen, rising energy costs, and high inflation has led to a decline in logistics demand.
The outlook index, which reflects economic expectations for the next two to three months, also dropped by 1.4 points to 46.6.■