Reuters is reporting that the Japan all-industries index, in figures released today, moved up 1.1% in May, suggesting an upward move for Gross Domestic Product. The tertiary sector index, covering the services industry also reported a 1% rise.

There is some caution however, as June department store sales figures just in were weak.

"However, separate figures for June department store sales were quite weak, so the next tertiary sector index (for June) may well show a fall. Although the latest figures do suggest we're headed towards recovery, we'll likely continue going one step forward, one step back."

Industry data last week showed sales at Tokyo department stores fell 3.7 percent year-on-year in June. Data on Monday showed sales at convenience stores fell for the twelfth month in June on a same-store basis, down 1.5 percent from a year before.

There may be room for cautious optimism for domestic consumer demand mid term, though the value of the Yen and the unknown timing of international economic recovery makes export revenue less certain, reducing chances for a broad based economic recovery in Japan.

Advertising and market research industry growth in Japan is stagnant to slightly positive, while business awaits further evidence of a rise in consumer sentiment.