Japan's Economy Watchers current survey index declined to 42.6 in April from 45.1 in March, striking its lowest reading in four years, reported the Cabinet Office.

The Economy Watchers survey polls the sentiment of frontline service workers, such as retail clerks, barbers, cab drivers, waiters and bartenders.

Readings above 50 on the Economy Watchers index point to optimism, while readings below signal pessimism.

The Economy Watchers outlook survey index in April fell to 42.70 in April from 45.20 in March, also striking a four-year low, reported the Cabinet Office.

The results of the Economy Watcher's survey somewhat conflict with recent reports from S&P Global.

The headline Japan services purchasing manager index (PMI) rose to 52.4 in April from 50.0 in March, thus moving above the 50-mark that separates growth from contraction, reported S&P Global last week.

"Business activity has now expanded in five of the past six months, though the latest rise was modest overall," said S&P Global.

However, the Bank of Japan recently issued a tempered forecast for Japan's economy in 2025.

In its "Outlook for Economic Activity and Prices," issued on May 1, the Bank of Japan lowered its estimate for the nation's gross domestic product (GDP) expansion in fiscal 2025 (started April 1) to 0.5% on year, down from 1.1% in its previous estimate.

The central bank, in part, cited international trade tensions for the reduced outlook.