The Japanese Eco Watchers Survey rose to 22-month high of 42.4 in July from 42.2 in previous month, but the rebound in economic confidence could be short-lived as government stimulus starts to taper off. At the same time, the gauge for future outlook fell for the first time since last December, with the index slipping to 44.9 from 45.6 in June, and fears of a slower recovery may lead businesses to turn increasingly pessimistic towards the economy as they face fading demands from home and abroad.