Despite Japan's reported economic recovery, its diamond market remained lacklustre in 2007 and market sentiment is that this condition will likely continue this year.

External and internal factors -- sluggish growth in wages, insecurity about future pension payments, rising fuel and food prices -- have been cited as factors depressing consumers' willingness to spend, thereby affecting the jewellery market.

Diamond dealers who responded to JNA's spot survey anticipate sales declines ranging from 5 to 15 percent or at best a single-digit increase this year from 2007.

An update on the developments in the Japanese market is in Jewellery News Asia's January 2008 issue.