Japan’s govt raises view on economy, first time in six months

TOKYO: Japan’s government yesterday raised its overall view of the economy for the first time in six months, reflecting a gradual pick-up in private consumption and underscoring its confidence that an export-led recovery is broadening.

The government also raised its view of private consumption – which has been a weak link in the economy – saying that it is picking up gradually.

A government official said a pick-up will be sustained on the back of the improving job market and household incomes, which prompted the upgrade of the overall assessment.

The upgrade came after the Bank of Japan (BOJ) last Friday raised its assessment on private consumption for the first time in six months, describing it as increasingly resilient.

“The economy is experiencing a moderate recovery,” the cabinet office said in its monthly economic report for June.

It dropped a previous reference to delayed improvement in some areas, namely consumer spending, from the overall assessment, which is the first upgrade since December.

The BOJ has a slightly rosier view on the economy, which it said has been turning toward a moderate expansion. – Reuters