Business sentiment among taxi drivers, restaurant owners, department store clerks and others improved in October, with their index hitting positive territory for the first time in 39 months, according to a government survey released Tuesday.
The diffusion index of economic confidence among "economy watchers" improved 2.2 points from September to 50.8, the Cabinet Office said, underlining the gradual economic recovery led by major manufacturers.
The survey also showed that those with jobs sensitive to economic swings have upbeat forecasts for the near future, with the index for economic conditions in the coming few months up 1.2 points to 51.1, topping the 50 line for the first time in 37 months.
The index is based on whether respondents see economic conditions improving or worsening in comparison with three months before. A reading of 50 indicates respondents generally believe the economy is unchanged.
The survey found that the index for corporate activity gained 1.3 points to 52.5, with that for manufacturers up 2.4 points to 52.9 and that for nonmanufacturers unchanged at 51.9.