Japan's Economy Watchers Survey and LEI Are Diverging

QE is rolling on in Japan, but we're starting to see some mixed signals when it comes to the real economy, the latest of which is the divergence between the just released and widely followed Economy Watchers Survey and the Leading Economic Indicator. We are keeping an eye on Abenomics to make sure the strength in some indicators is not a transitory result of the 20% currency devaluation and 2013 fiscal stimulus - both of which if not doubled down upon will fail to be tailwinds next year.