MNI BRIEF: Japan Govt Keeps Overall Economy View Unchanged

Japan's government kept its main economic assessment unchanged for a 4^th straight month in August, but upgraded its view on corporate profits, the Cabinet Office said Thursday, again saying the country is recovering from the pandemic, despite some areas of weakness.

But downside risks are seen growing as infections pick up, which could have an impact on near-term outcomes.

The assessment of corporate profits was upgraded from July, the first monthly uptick since February.

Corporate profits are picking up, "although some weakness remain in non-manufacturers" due to the virus. The government tweaked its assessment of both private consumption and consumer prices, noting a 'recent' weakness in spending and that consumer prices "show steady movements recently."

There was no adjustment to the near-term outlook, noting the economy is expected to show signs of picking up, helped by government and central bank actions and the recovery in overseas economies. The monthly report also noted that attention should be paid to the effects of fluctuations in the financial and capital markets.