TOKYO, Dec 10 (Reuters) - Japan's service sector sentiment

index edged up to 40.0 in November, a Cabinet Office survey

showed on Monday, suggesting the economy has stopped

deteriorating.

The survey of workers such as taxi drivers, hotel workers

and restaurant staff - called 'economy watchers' for their

proximity to consumer and retail trends - showed that their

confidence about current economic conditions rose from 39.0 in

October.

In its assessment of the survey results, the Cabinet Office

said Japan's economy remains weak. That compared with its

previous view that the economy was weakening further.

The outlook index, indicating the level of confidence in

future conditions, was 41.9, up from 41.7 in October.

The Cabinet Office started compiling the data in comparative

form in August 2001.

(Reporting by Kaori Kaneko; Editing by Michael Watson)

((kaori.kaneko@thomsonreuters.com)(Reuters

Messaging:)(kaori.kaneko.reuters.com@reuters.net)(+81-3-6441-198

))

Keywords: JAPAN ECONOMY/SENTIMENT

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