Japan's frontline service-sector workers saw a relatively improving economy in October, the Cabinet Office reported on Tuesday.

The nation's Economy Watchers Survey index rose to 49.1 in October from 47.1 in September, reflecting improving views of cab drivers, hotel staff, restaurant and bar workers and others that economic conditions are relatively improving.

October marked the sixth-straight month the Economy Watchers Index has risen, and the metric struck a 19-month high.

The Economy Watchers "view, as indicated by the results of this survey, is that 'the economy is recovering.' Regarding the future outlook, while there are concerns about the impact of rising prices, a continued recovery is expected," reported the Cabinet Office.

Japan reported its consumer price index (CPI) rose 2.9% on year in September.

Japan's frontline employees in October appeared more optimistic about the future.

The Economy Watchers October outlook index logged at a seasonally adjusted 53.1, a jump from 48.5 in September, and swinging into the optimism zone and to a 27-month high, reported the Cabinet Office.

The Economy Watchers Survey (EWS), from which the Economy Watchers Index is produced, surveys 2,050 individuals each month.

Japans workforce has been facing a slowly growing economy, but one in which unemployment is low.

Japan's gross domestic product (GDP) is expected to expand by a tempered 0.7% in fiscal 2025 started April 1, and then expand again by 0.7% in fiscal 2026, estimated the Bank of Japan in late October.

Nevertheless, the nation's unemployment rate was a modest 2.6% in September, and there are 120 job openings for every 100 job-hunters, according to the Ministry of Health, Labor and Welfare

The Bank of Japan, which has a 2% annual inflation target, next meets December 18-19 to adjust monetary policy. The central bank has kept its key policy rate unchanged at 0.50% since January.

The central bank has stated that it wants demand for labor to be strong enough to boost real wages, but may face pressures to raise interest rates to cool inflation.