The Japan Economy Watchers Survey Outlook index rose to 50.1 in December from 49.5 in November, the third straight monthly increase, reported the nation's Cabinet Office on Monday.

"The economy is picking up. As for the future, the rebound is expected to continue, despite concern about the impact of price hikes," was the Cabinet Office summary of the latest EcoWatcher poll.

The improving EcoWatcher survey outlook results may play into the Bank of Japan's next rate decision, slated for next month, and follows on the heels of a " Sunday national election win by Prime Minister Sanae Takaichi's Liberal Democratic Party, a "landslide" that is expected to boost fiscal expansionism.

Japan's Economy Watchers monthly survey gauges the sentiments of frontline workers in consumer-facing industries, such as cab drivers, restaurant staff and hotel employees. Results above 50 on the survey indicate optimism or expansion, while results below 50 suggest the opposite.

"By enlisting the cooperation of people holding jobs that enable them to observe activity closely related to regional economy, these survey results can be used as basic material for assessing economic trends," explained the Cabinet Office

However, the EcoWatcher's current conditions index, which gauges sentiments in the present business environment, dropped marginally to 47.6 in January from 47.7 in December.

The January Economy Watcher's survey result is roughly in line with recent outlooks for the nation's economy issued by the Bank of Japan.

Japan's gross domestic product (GDP) is expected to expand by 0.9% on year in fiscal 2025 ended on April 1, and then expand by another 1% in the coming fiscal year, said the central bank in Late January.

The EcoWatcher's survey collects responses from 2,050 individuals each month.