TOKYO, Dec 10 - Japan's economy is still in a mild deflationary state but there are some signs of change, Prime Minister Junichiro Koizumi's top economic advisory panel said on Wednesday. In an updated report on its outlook for the year ending next March, the Council on Economic and Fiscal Policy also said companies were becoming less worried about deflation. "Consumer prices and domestic corporate goods prices are falling, but the decline is shrinking," the report said. "In addition, there are signs of improvement among corporations on deflationary concerns. While taking various price movements into account, the nation's economy is in a mild deflationary state but there are signs of change." The panel also said it hoped the Bank of Japan would continue to provide ample liquidity under its strengthened commitment to wipe out deflation.//