Japan's government upgraded its main monthly economic assessment for the first time since July 2022, alongside upgraded forecasts on private consumption, production and exports, the Cabinet Office said Thursday.

“The Japanese economy is recovering at a moderate pace,” the Government said, amended from its previous view that, “the Japanese economy is picking up moderately, although some weaknesses are seen.” The Government noted exports “have shown a steady undertone,” the first upward revision since December 2020. A Cabinet Office official said automobile exports – including parts – had driven the upward revision.

On private consumption, the official said spending linked to durable goods and services rose due to wage increases and the reclassification of Covid-19 to a Class V infectious disease and the recovery of inbound tourists. The Government deleted “moderately" from its assessment, the first upward revision since July 2022. Industrial production “shows signs of picking up,” for the first upward revision since August 2022, according to the official. The previous view noted industrial production had been weak.

The Government also upgraded its assessment on overseas economies for the first time since August 2021. Despite the slowing y/y rise in the consumer price index, it left its assessment unchanged, noting prices were rising.