TOPWRAP 3-Germany, Japan sound caution on economic rebound

* German finance ministry warns on growth sustainability

* BoJ board member: Government, cenbank still need to help

* Reuters polls: Strength of G7, U.S. recoveries in doubt

* World policy-makers set to meet in Jackson Hole, Wyoming

* Recession hits Sears results but food companies get jolt

(For more on the global financial crisis, double-click on [n CRISIS])

By Daniel Trotta and Brian Rohan

NEW YORK/BERLIN, Aug 20 (Reuters) - Germany and Japan cast doubt over the strength of economic recovery on Thursday, adding to concern nascent growth may disappear without sustained government stimulus, and U.S. economists also feared the American economy could slip back into recession next year.

Economists polled by Reuters believe the U.S. economy is recovering more strongly than expected from its worst recession in decades, but next year will be lackluster and risks of a double-dip downturn remain. [ID:nLAG003672]

Reuters polls on G7 economies also showed analysts had raised their views on the third quarter, but that many were subdued about 2010. [ID:nLK651489]

U.S. growth is expected to return in the current third quarter while economic heavyweights such as Germany, Japan, France and Hong Kong have already pulled out of recession, leading markets to rise and governments to consider winding down stimulus programs.

But recent talk of ending some of the measures taken to combat the worst financial crisis since the 1930s is being overtaken by words of caution on the rebound's strength before a G20 leaders summit in Pittsburgh next month to discuss financial reform.

Policy-makers from around the world will also gather in Jackson Hole, Wyoming, this week to think about how to prevent the crisis from happening again. [ID:nN19476446] Fed Chairman Ben Bernanke speaks at 8 a.m. Mountain time (1400 GMT) on Friday to reflect on the lessons learned and assess whether signs of recovery are lasting.

Bank of Japan board member Atsushi Mizuno has already spoken up. He told business executives in Okayama, western Japan, that the country's export recovery may slow starting in the autumn, suggesting he may favor extending steps such as buying commercial paper and corporate bonds beyond December. [ID:nT169364]

"Global financial and economic conditions remain fragile and can't achieve a sustained recovery without support from governments and central banks," Mizuno said.

Economists saw about a one in four chance of the United States suffering a "double-dip" recession where a return to growth is followed by another contraction.

Adding to worries over a weak recovery, the number of U.S. workers filing new claims for jobless benefits unexpectedly rose last week, a government report showed on Thursday. [ID:nN20510281]

"The report is indicative that this is definitely not going to be a V-shape recovery. For a real recovery we need the consumer to be in the game but with rising unemployment the consumer is not going to be out there spending," said Kurt Karl, chief U.S. economist with Swiss Re in New York.

U.S. stocks [.N] dipped at the open on the jobless data but quickly recovered, rising on the backs of a rally in Asian and European markets.

DOUBTING GERMAN GROWTH

In Germany, where Chancellor Angela Merkel's ruling Christian Democrats face federal elections next month, the Finance Ministry said it was not clear whether the economy's return to growth would last. [ID:nLJ145035]

"Despite a clearly improved indicator picture, it is not clear at the moment whether the economic stabilization will hold," the ministry said in its monthly report for August.

Germany posted unexpected growth in the second quarter but economists said the bounce relied heavily on the help of government stimulus, including measures such as a car scrapping scheme that has boosted auto sales.

Britain has also shown concern over the beginnings of its recovery. Bank of England minutes published on Wednesday showed some members of its policy committee including Governor Mervyn King had wanted an even bigger increase in asset-buying than the 50 billion pound ($82.6 billion) boost earlier this month. [ID:nL6430949]

SEARS TURNAROUND SPUTTERING

In the United States, retailer Sears Holding Corp reported a quarterly loss instead of the profit Wall Street was expecting, as cost-cutting measures enacted under chairman and hedge fund manager Edward Lampert could not offset falling revenues. Its shares were down more than 10 percent. [ID:nN20506280]

But the faltering economy actually gave a boost to packaged food makers H.J. Heinz Co and Hormel Foods Corp both posted better-than-expected quarterly profits as consumers bought more items like ketchup and Spam as they increasingly ate at home to save money. [ID:nN20235456]

(Additional reporting by Reuters bureaus around the world; Editing by Andrew Hay)