Japan's Economy Watchers Survey still points to a slowdown in manufacturing activity in coming months

The jump in Japan February's Economy Watchers Survey suggests that economic conditions are improving strongly. (Data released on Monday.) 

The current conditions component surged from 45.6 in January to 50.1 in February, the highest it has been since last July, and the outlook component climbed from 50.0 to 53.1, too. 

Capital Economics notes in a report on Monday:

• Respondents usually expect conditions to improve in coming months, and the gap between current activity and the outlook is not particularly large by past standards. 
  
  
• In fact, the survey still points to a slowdown in manufacturing activity in coming months.